In the absence of specific state or local laws, when can an appraiser rely on a protected characteristic for credible assignment results?

The correct answer highlights that an appraiser can rely on a protected characteristic for credible assignment results only if it is essential and necessary for the assignment. This is in line with ethical standards and the Uniform Standards of Professional Appraisal Practice (USPAP), which emphasize that appraisers must use appropriate methods that contribute to the credibility of their valuation.

In order to ensure the integrity of the appraisal process, appraisers must avoid relying on characteristics that could lead to discrimination or bias, as outlined under federal and state fair housing laws. Therefore, the only circumstance under which it is permissible to consider a protected characteristic is when it directly impacts the value and is necessary for fulfilling the appraisal requirements. For instance, if an appraiser is valuing a property in a market where certain characteristics such as accessibility features are crucial due to market demands, then these characteristics can be factored in to achieve a credible result.

Other options would not be acceptable under USPAP guidelines. For example, relying on a characteristic simply because it is approved by the appraisal board could lead to ethical dilemmas, and basing assessments purely on market preferences may encourage bias. Requests from clients for consideration of protected characteristics also would not be justifiable without the necessary and essential context for the assignment. Thus, the