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An appraiser from Smallburg was asked to do an appraisal of an improved, now-vacant industrial property in Bigville. This property has significant environmental problems that were reported several times in the local newspaper and on the local TV news. The client is a lender who agreed to use this appraiser because he was reported to have specific knowledge about industrial properties. The appraiser drove 75 miles from Smallburg to Bigville to do the inspection. He spent one hour viewing and measuring the buildings. The appraiser contacted a local appraiser for comparable sales and leases in the industrial market in Bigville. He prepared an appraisal report without acknowledging or compensating for the environmental problems, and the value was overstated by plus or minus $2 million. Which of the following statements is correct?
A lender asked an appraiser to prepare an appraisal report on a 2.2-acre site with a proposed single-tenant industrial building. The lender requested a value estimate as of today, which the appraiser provided via comparison with vacant land sales. The lender also requested a value opinion as if the structure were completed. This is an example of
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