What is "appraisal bias"?

Appraisal bias refers to the influence of personal opinions, emotions, or subjective perspectives on an appraiser's judgment rather than relying solely on objective data and well-established appraisal practices. This can manifest in various ways, such as favoring certain property characteristics due to the appraiser’s personal preferences or preconceived notions about a neighborhood or property type.

In the appraisal profession, maintaining objectivity is crucial because a bias can lead to inaccurate property valuations, unfair assessments, and potentially discriminatory practices. Appraisers need to be aware of their biases and take strides to mitigate them to ensure all property valuations are fair and based on the same objective standards, data, and criteria for everyone.

Understanding what constitutes appraisal bias is vital for appraisers to adhere to ethical standards and professional guidelines that underscore the importance of impartial valuations. This awareness helps protect the integrity of the appraisal process and promotes equitable outcomes in real estate transactions.