If you include demographic information from a report that includes race and ethnicity, what implication does this have under USPAP?

Including demographic information such as race and ethnicity in an appraisal report can carry significant implications under USPAP. Specifically, it may suggest reliance on impermissible information. USPAP emphasizes the importance of ethical appraisal practices, which includes avoiding factors that could lead to discriminatory practices in real estate transactions.

When demographic information is included, it raises concerns regarding fair housing laws and anti-discrimination statutes, as this data could imply that the appraiser is making decisions based on race or ethnicity rather than objective market data. Standards set forth by USPAP require appraisers to base their opinions of value on equitable and permissible data to ensure that appraisals are not subject to bias, intentional or otherwise.

This highlights that the inclusion of such sensitive information must be approached with caution, as it can inadvertently suggest that the appraiser is not adhering to the principles of fair and equitable treatment. Therefore, adherence to relevant legal and ethical standards is critical to maintaining the integrity and credibility of the appraisal process.