In fair housing practice, which factor is prohibited to be considered in an appraisal?

In fair housing practice, which factor is prohibited to be considered in an appraisal?

• A. Age
• B. Income
• C. Protected status
• D. Disability

Answer: (C)

In fair housing practice, valuations must be based on objective property factors and market data, not on who would live in the property or their personal characteristics. Considering any characteristic that is protected by law would amount to discrimination, so appraisers must avoid weighting the appraisal by these traits. Protected status is the broad category that encompasses characteristics like race, color, national origin, religion, sex, familial status, and disability, and evaluating a property by any of these would violate the Fair Housing Act. That makes protected status the factor prohibited in an appraisal. Disability is an example of protected status, so it would also be improper to consider; meanwhile, age and income aren’t protected classes under the federal act, though other contexts may impose different rules. The appraisal should reflect only property- and market-related factors such as location, size, condition, and comparable sales.

In fair housing practice, valuations must be based on objective property factors and market data, not on who would live in the property or their personal characteristics. Considering any characteristic that is protected by law would amount to discrimination, so appraisers must avoid weighting the appraisal by these traits. Protected status is the broad category that encompasses characteristics like race, color, national origin, religion, sex, familial status, and disability, and evaluating a property by any of these would violate the Fair Housing Act. That makes protected status the factor prohibited in an appraisal. Disability is an example of protected status, so it would also be improper to consider; meanwhile, age and income aren’t protected classes under the federal act, though other contexts may impose different rules. The appraisal should reflect only property- and market-related factors such as location, size, condition, and comparable sales.