What constitutes “bias” in appraisal isn’t always what you expect, according to an attorney who handles cases involving appraisers.

First, let’s start with a definition we can agree on: Objectivity in appraisals means analyzing data based on well-established principles, free from bias or external pressure.

Appraisers know what external pressure looks like. Anybody who’s been in the business for as long as I have knows all about the regulatory firewalls that were enacted following the 1980s S&L crisis (FIRREA) and the 2008 financial crisis (Dodd-Frank, HVCC). There’s lots of disagreement on the legacy of these regulations, but they were undoubtedly created to address the perception of undue pressure on appraisers from financial institutions or other parties involved in transactions.

Now let’s zoom in on bias. This topic does NOT inspire feelings of neutrality in the appraisal community. That non-neutrality comes out (a bit explosively) in comments threads and appraiser forums, and sometimes even in the classroom. I’ve sat in on several of Peter Christensen’s in-person classes on bias and fair housing law, and invariably somebody in class pushes back. Sometimes the air gets pretty hot and hostile. But Peter always handles the pushback with calm and aplomb. He hears folks out, responds respectfully, and steers the conversation back to his thesis — that bias exists, and it can take forms that we don’t necessarily expect.

In a brief interview I did with him (see the video below), he tells a story about a case he handled, in which an appraiser’s report was found to exhibit bias to a homeowner whose political views he loathed. Peter tells this story in his class, and it always surprises people, because they’ve seen this divide in their own lives and can imagine something like this actually happening.

I thought I knew what bias looked like, but I’ve begun to realize that it can creep in when we’re least expecting it. —Hal Humphreys

I thought I knew what bias looked like, but I’ve begun to realize that it can creep in when we’re least expecting it. Recently I was laughing to a colleague at the notion of “luxury vinyl” plank flooring. “That’s an oxymoron,” I scoffed. “How can vinyl be ‘luxury’?”

“You just showed bias,” said the colleague. And I realized he was right. Lots of builders and consumers love LVP. It’s waterproof, low-maintenance, and easy to install. Some of it looks pretty good. I do NOT love it, and I probably won’t put it into my own house. I’m old school: I love hardwood floors and porcelain tiles, and I’ll splurge on nice materials whenever possible. But my flooring bias should never creep into my valuations. I shouldn’t assign a home a lower quality rating solely because it includes LVP. If buyers value it, that’s what counts.

The takeaway: you might harbor biases without realizing that’s what they are. They may seem innocuous, but they may sneak into your analysis all the same. That’s why I love how Peter Christensen approaches his class on valuation bias and fair housing law: He comes at it from an angle you won’t expect. He doesn’t accuse or shame anybody; he tells stories of how bias crops up in the real world — in the history of real estate, and in lawsuits and appraisals that have been challenged. He’s defended appraisers in matters before HUD and involving the CFPB, so he know how these cases play out, and he shares those stories in his class. His tone is one of deep experience, genuine curiosity, and intellectual humility.

Check our course catalog for Peter’s 7-hour class, Valuation Bias & Fair Housing Laws and Regulations. We’re running this course about every eight weeks this fall and winter, and the frequency will most likely pick up early next year.

Which brings me to some intel about a new CE requirement: I flinch a little when I mention this, because we’ve gotten some very angry (and even profane) responses when we’ve informed folks that the AQB has made this 7-hour class on bias and fair housing laws and regulations mandatory for licensed appraisers effective on January 1, 2026. Don’t murder the messenger. We’re not telling you what to do — we are not an all-powerful body with the power to mandate things. We merely inform, and so we’re just letting you know what the AQB has mandated.

If When you take this class, I predict you’ll discover that bias cases aren’t always what you expect, and you’ll learn what you didn’t know you didn’t know about fair housing laws. Maybe you’ll come away ready to challenge your own assumptions and rethink your definitions of bias and objectivity. I just ask you, humbly, to keep an open mind. Watch the video below to learn more.