Under what circumstances can the use of a protected characteristic be allowed in an appraisal?

The correct answer centers on the ethical and legal considerations that govern appraisal practices. The use of a protected characteristic, such as race, religion, sex, or national origin, can be permissible only when it aligns with ethical standards and is not in conflict with any laws prohibiting discrimination. Under the Uniform Standards of Professional Appraisal Practice (USPAP), appraisers are trained to adhere to the principles that uphold fairness and objectivity in their assessments, ensuring that appraisals are based on relevant data and market conditions rather than personal or discriminatory factors.

In contexts where using a protected characteristic might be relevant—for instance, when assessing the impact of neighborhood demographics on property values—appraisers must navigate these issues carefully. The emphasis is on maintaining compliance with federal and state anti-discrimination laws, which seek to protect individuals from bias based on these characteristics in real estate transactions.

The other options reflect scenarios that either conflict with ethical norms or legal requirements, and thus cannot justify the inclusion of protected characteristics in an appraisal. For instance, benefiting the appraiser or following a client’s request without legal consideration may lead to unethical practices, while market conditions should be gauged through objective measures that do not involve discrimination.