In this fluid environment, the Appraisal Institute encourages its professionals to remain aware of developments and resources offered by health professionals and public health organizations and to respond accordingly.
Additionally, here is some guidance cultivated by AI Professional Practice staff:
Appraisers should take care not to put themselves in harm’s way while completing their assignments. Appraisers are advised to consult with their medical practitioners if they have concerns about exposure to the virus, and they should decline assignments if they feel their own health would be put at risk. Here is the Centers for Disease Control and Prevention’s current risk assessment.
An important part of any appraisal assignment is analysis of market conditions. The coronavirus threat may be impacting market conditions. However, in most markets it is not yet clear to what extent, if any, market conditions are affected. Related, complicating factors include fluctuations in the stock market and changes in mortgage interest rates.
Market analysis includes observing market reactions. This analysis becomes more complicated when market participants themselves are facing uncertainty.
Appraisal reports should include a discussion of market conditions, and so mention the Coronavirus outbreak and its possible impact. However, it is not appropriate to include a disclaimer or extraordinary assumption that suggests the appraiser is not taking responsibility for analysis of market conditions.
The Appraisal Institute has published Guide Note 10, Appraising in the Aftermath of a Disaster, and Guide Note 12, Analyzing Market Trends. These two Guide Notes, which can be found on the Appraisal Institute’s web site, provide helpful guiding principles.
To learn more, feel free to read these documents: