What risk arises from using different selection criteria for comparable properties based on the homeowner's race?

Using different selection criteria for comparable properties based on the homeowner's race introduces significant ethical and legal concerns, primarily related to nondiscrimination laws. Appraisers are required to adhere to uniform standards and practices that promote fairness and equity in the real estate market. When selection criteria vary based on race, it risks violating the Fair Housing Act and other equal opportunity regulations, which could lead to legal consequences for the appraiser, as well as perpetuating systemic discrimination within the housing market.

This practice undermines the appraiser's objectivity, as it suggests that the value of a property could be influenced by the race of the homeowner rather than its actual market characteristics and conditions. Not only does this compromise the integrity of the appraisal process, but it can also have broader negative impacts on communities by reinforcing inequality and limiting access to fair housing.

In highlighting the need for standardized criteria irrespective of personal characteristics, this reasoning underscores the necessity for appraisers to maintain an unbiased approach that is consistent with ethical standards and legal requirements.