An appraiser’s conflict of interest refers to which of the following?

An appraiser’s conflict of interest primarily refers to bias, which occurs when an appraiser has a personal stake or interest that might influence their judgment regarding the value of a property. This can arise from various situations, such as existing relationships with property owners, financial interests in the outcome of the appraisal, or external pressures that could compromise objectivity.

Bias can impact the appraisal process by leading the appraiser to favor certain outcomes that do not represent a true and fair market value. Professional standards emphasize the importance of avoiding conflicts of interest to ensure that appraisals are conducted with neutrality and integrity. Appraisers are required to disclose any potential conflicts of interest that may affect their impartiality, as maintaining an unbiased perspective is crucial to uphold the reliability of their assessments.

While integrity, independence, and subjectivity are important concepts in appraisal practice, they do not specifically define the notion of conflict of interest. Integrity refers to the honesty and ethical standards of the appraiser; independence emphasizes the need for the appraiser to operate without undue influence; and subjectivity can be part of the appraisal process but does not inherently denote a conflict. Therefore, the most direct association with a conflict of interest is found in the concept of bias.