What is a potential violation when an appraiser selects comparable sales based on the race of the property owners?

Selecting comparable sales based on the race of the property owners demonstrates a potential violation of fair housing laws and ethical standards in appraisal practice. This choice highlights that it is inappropriate to let characteristics such as race influence the selection of comparable sales, as doing so can lead to discriminatory practices, which are not only unethical but also illegal under fair housing regulations.

In appraisal practice, comparables should be selected based on relevant property attributes such as location, size, condition, and selling price, rather than characteristics of the owners. Using an owner's race to influence the selection process undermines the fundamental principle of impartiality that is essential in valuing properties objectively.

In contrast, the other choices suggest compliance with fair housing laws or adherence to ethical standards, which is not the case when selecting comparables based on race. Thus, B correctly identifies the problematic behavior of allowing race to influence appraisal decisions, aligning with both ethical considerations and legal requirements.