Question

An appraiser receives an appraisal request on a complex property. He does not have the knowledge and experience to complete the assignment competently, and does not wish to obtain the knowledge and experience. Which of these statements is TRUE?

a) The appraiser should decline the assignment.
b) The appraiser can proceed with the assignment but should disclose the lack of expertise.
c) The appraiser should delegate the assignment to a more experienced colleague.
d) The appraiser can proceed and acquire the necessary knowledge during the appraisal process.

Answer 1

The appraiser should decline the assignment if they lack the necessary knowledge and experience to perform the appraisal competently, in order to maintain professional ethics and standards.

Step-by-step explanation:

If an appraiser receives an appraisal request on a complex property and does not have the necessary knowledge and experience to complete the assignment competently, the most professional course of action is to decline the assignment. It is essential to maintain a high standard of professional ethics within the appraisal industry, and undertaking a project without the requisite expertise could lead to inaccurate appraisals and potentially have legal or financial repercussions.

Just as it's not advisable for individuals to rely solely on their gut feelings or intuitions when assessing the value of complex goods like cars, gemstones, or legal services, an appraiser should not attempt to appraise a property without the proper qualifications. The risks of imperfect information are substantial, and though there are mechanisms to mitigate these risks, they cannot replace the need for expertise in the first place.