In what scenario can an appraiser use or rely on a protected characteristic in their appraisal?

The use of a protected characteristic in an appraisal is permissible when required by law. This aligns with the principles established in fair housing laws that are designed to prevent discrimination based on characteristics such as race, color, national origin, sex, familial status, or disability.

In some contexts, such as when appraising properties for government-related transactions or programs, appraisers might need to consider certain characteristics that are explicitly outlined in those laws to ensure compliance with anti-discrimination regulations. This requirement helps maintain fairness and equity in the appraisal process and contributes to upholding legal standards that protect individuals from bias or discriminatory practices in housing.

In scenarios where appraisers are authorized by the client, or in the context of residential appraisals specifically, or when it might seem helpful in determining market value, there are limits. These scenarios do not align with the stringent legal requirements that protect individuals against discrimination, which reinforces the idea that appraisers must tread carefully when considering protected characteristics to avoid violating laws and ethical standards.