How can bias manifest in selecting comparables?

• A. Rely on a small set of comps from a single neighborhood.
• B. Cherry-picking comps from neighborhoods with favorable demographics or similar characteristics that unfairly influence adjustments.
• C. Using comps from across the entire country regardless of proximity.
• D. Not using any comps at all.

Answer: (B)

Bias in selecting comparables shows up when the set of sales used as benchmarks isn’t truly representative of the subject’s market. If an appraiser cherry-picks comps from neighborhoods with favorable demographics or similar characteristics in a way that unfairly sways the adjustments, the valuation reflects those preferred traits rather than real market behavior. This undermines objectivity because the comps are chosen to push the value in a desired direction instead of reflecting what similar properties in a like market actually sold for. The right approach is to build a reasonable, representative set of comps that are nearby, similar in property characteristics, and aligned in time, then make objective adjustments for differences based on market data.

Why the other ideas don’t fit as well: using a small set of comps from a single neighborhood can still be biased by limited representation and local quirks, but the explicit misuse of demographics to influence adjustments is the pure example of biased selection described here. Using comps from across the country ignores local market realities, which reduces relevance rather than directly indicating discriminatory bias. Not using any comps at all is a fundamental flaw in appraisal practice, not a bias manifestation in selection.