If an appraiser states that they have considered a property in a neighborhood with similar access to employment but relies on ethnicity to select comparables, this is known as what?

The assertion about the appraiser's reliance on ethnicity to select comparables is known as a pretext. It involves using a misleading or superficial justification for an action that may actually be driven by underlying biases or discriminatory reasons. In this scenario, while the appraiser claims to consider the property's access to employment, the mention of ethnicity suggests they are subconsciously or consciously allowing preconceived notions about ethnic groups to influence their selection of comparable properties.

A pretext in appraisal is problematic because it implies that the appraiser's conclusions and selection criteria are not based on fair and objective market data but instead on potentially biased criteria, which undermines the integrity and fairness of the appraisal process.

The other terms relate to concepts that also address issues of fairness and ethics, but they highlight different aspects. For instance, ethnic profiling refers more specifically to the practice of targeting individuals based on their ethnicity rather than professional standards. Discriminatory practice emphasizes actions that lead to unequal treatment based on personal characteristics—including ethnicity—while market segmentation involves dividing a market based on distinct characteristics, which does not necessarily imply bias.