When considering additional value for an assumable loan on the ERC appraisal report, when should this be recognized?

The correct response pertains to recognizing additional value for an assumable loan only when there is a specific client request for it. In situations where a client has explicitly requested that the appraisal report reflect additional value associated with such loans, it indicates that they believe this aspect is pertinent to the overall valuation for their real estate.

Failing to consider a client request could lead to dissatisfaction with the appraisal outcome or misalignment with the client’s expectations. This approach aligns with the principle of ensuring that the appraisal meets the client’s needs and covers all relevant aspects that may affect the transaction's value.

The other options focus on various loan characteristics and thresholds but do not emphasize the importance of client instructions in the appraisal process. For instance, recognizing the additional value solely based on a loan interest rate being below market does not consider other factors that may influence the client's decision. Similarly, thresholds like '$5,000' or the loan type through FHA or VA may be relevant in specific contexts, but without a client directive, they do not suffice to warrant a change in recognition of value. Thus, prioritizing the client's request serves as the most sound basis for determining the recognition of additional value in an appraisal report.