What should an appraiser do if they realize that a single unit dwelling is actually a three-unit dwelling?

When an appraiser discovers that a single unit dwelling is in fact a three-unit dwelling, it is critical to reconsider the scope of work before proceeding. The reason this is essential is that the appraiser must ensure the appraisal is accurate and reflects the true nature of the property. A three-unit dwelling involves different valuation approaches, considerations for income potential, and compliance with local zoning laws compared to a single-unit dwelling. Failing to reevaluate the scope can lead to significant inaccuracies in the appraisal report and may result in legal or financial ramifications.

Additionally, assessing the property correctly ensures that the final value reflects its true market value, which is essential for all stakeholders involved, including lenders, buyers, and sellers. Adjusting the scope of work may involve gathering additional information, consulting relevant regulations, or applying different methodologies for appraisal.

In doing this, the appraiser demonstrates professionalism and adherence to ethical standards within the field, ultimately supporting integrity in the valuation process.