Why is it important for an appraiser to understand the implications of their choice of comparables?

Understanding the implications of the choice of comparables is crucial for an appraiser primarily to ensure compliance with USPAP (Uniform Standards of Professional Appraisal Practice) and discrimination laws. Appraisers must select comparables that are not only relevant and similar to the subject property but also ethically and legally appropriate. The selection process can impact the assessment of value, and if comparables are chosen improperly, it may lead to biased outcomes, possibly violating discrimination laws like the Fair Housing Act.

By adhering to the guidelines set forth by USPAP, appraisers can maintain professionalism, objectivity, and integrity in their evaluations. Compliance ensures that appraisals are based on fair practices and accurate data, thereby fostering trust in the appraisal process among stakeholders, including clients, regulatory bodies, and the public. It is essential for appraisers to consciously evaluate their choices, as these decisions carry significant consequences in terms of both legal and ethical standards within the industry.