What must an appraiser do if they determine the cost approach is unnecessary for an appraisal assignment?

When an appraiser determines that the cost approach is unnecessary for an appraisal assignment, it is essential to state the reason for excluding this approach in the report. This practice is crucial for several reasons. Firstly, it ensures transparency in the appraisal process, allowing clients and stakeholders to understand the rationale behind the selected methods and approaches. Secondly, providing a reason for exclusion helps maintain the integrity and credibility of the appraisal, demonstrating that the decision was based on sound judgment and relevant analysis rather than arbitrary choice. Finally, documenting this reasoning can protect the appraiser professionally, illustrating due diligence and adherence to industry standards. The exclusion statement becomes part of the appraisal narrative, showcasing the appraiser's thought process and methodological choices.