What must an appraiser consider regarding state or local laws related to the use of protected characteristics?

In appraisal practice, it is essential for appraisers to be aware of state or local laws regarding protected characteristics because these laws can introduce complexities to the valuation process. Protected characteristics typically include attributes such as race, gender, nationality, and disability status, which are relevant to ensuring fair housing practices.

When appraisers consider these laws, they must navigate how these regulations may affect property values and market perceptions. For instance, if state or local laws provide specific guidelines or restrictions on property assessments related to these characteristics, failing to adhere to them could lead to legal challenges and improperly assessed values. Understanding and incorporating compliance with these laws into the appraisals ensures adherence to ethical standards and promotes fair treatment in the real estate market.

Moreover, appraisers must also remain cognizant of how these laws interact with broader federal regulations, as the landscape of real estate appraisal is influenced by various levels of legislation. This knowledge is crucial for conducting professional appraisals that not only comply with legal standards but also reflect the ethical responsibilities of the profession.