How should appraisers handle data sources that are known to be biased?

• A. Prioritize biased data sources when they support a favorable outcome.
• B. Always rely on the most convenient data sources.
• C. Use biased sources but adjust the results to look neutral.
• D. When confronted with biased data, avoid using those sources and rely on neutral sources with documented provenance.

Answer: (D)

Data integrity matters in appraisal, and biased data undermines objectivity and reliability. When a data source is known to be biased, the best practice is to avoid using that source and rely on neutral sources with documented provenance. This approach helps ensure the information can be traced, verified, and defended in the report, reducing the risk of skewed conclusions and potential regulatory or fair housing issues. Use independent, credible sources and, if possible, corroborate with multiple data points. Clearly document the sources and any limitations or potential biases in the data so the client and readers understand the basis of the analysis. Avoid trying to mask bias by adjusting data to look neutral or by choosing the most convenient source, as that compromises objectivity and transparency.