If an appraiser selects comparable sales based on racial demographics without further information, what are they likely violating?

Selecting comparable sales based on racial demographics without additional context breaches Fair Housing laws as well as the Uniform Standards of Professional Appraisal Practice (USPAP). Fair Housing laws are designed to prevent segregation and discrimination in housing-related activities, ensuring that all individuals have equal access regardless of race, color, religion, sex, handicap, familial status, or national origin. Using racial demographics as a basis for selecting comparables reflects bias and can perpetuate discriminatory practices, which is counter to the intended goals of these laws.

USPAP serves to promote ethical behavior and competent practices within the appraisal profession. Appraisers are required to appraise properties impartially and objectively. By focusing on race as a factor in selecting comparables, an appraiser not only risks violating ethical standards outlined in USPAP but also undermines the integrity and credibility of their appraisal through prejudice and discrimination.

Hence, the option pertaining to Fair Housing laws and USPAP directly aligns with the implications of using racial demographics improperly in comparable sales selection.