What does USPAP prohibit an appraiser from relying upon when developing an opinion of value?

USPAP, or the Uniform Standards of Professional Appraisal Practice, is designed to ensure that appraisers conduct their work with integrity, objectivity, and impartiality. One of its key principles is to eliminate biases and promote ethical practices in the determination of property values.

The prohibition against relying on the racial or ethnic makeup of a neighborhood is crucial to uphold fair housing practices. This guideline is rooted in the principle that appraisal values should not be influenced by factors unrelated to the property itself, which could lead to discriminatory practices. Incorporating the racial or ethnic composition of a neighborhood into the appraisal process could result in bias, reinforcing systemic inequalities and violating anti-discrimination laws.

In contrast, the other options provided, such as public property records, a buyer’s financial capacity, and sales prices of similar properties, are legitimate sources of information that appraisers can use to derive a well-supported opinion of value. Public property records provide factual data about ownership and property characteristics, buyer's financial capacity can indicate market demand, and sales prices of similar properties are essential for comparative market analysis. These elements align with standard appraisal practices, while using demographic factors like race or ethnicity directly contradicts the ethical obligations outlined in USPAP.