Landmark Legal Victory for the Appraisal Profession: Judge Dismisses Bias Lawsuit
The Appraisal industry has scored a significant legal victory in a recent court case involving allegations of bias. A judge has officially dismissed a lawsuit filed by a homeowner who claimed racial bias influenced the appraised value of their property. You can view the full case details and the judge’s ruling [Link to Case].
While the dismissal is a step forward for the profession, the damage to the individual Appraiser’s reputation has already been done. However, this ruling sets a powerful legal precedent that protects appraisers from unfounded accusations when a homeowner simply disagrees with the valuation. The Appraiser involved now has the right to countersue for defamation—whether he chooses to do so remains to be seen.
For years, the appraisal profession has been under fire with allegations of bias and racism. While there have been settlements without admissions of guilt, no lawsuit has successfully proven that racial bias influenced an appraised value.
It's important to understand one crucial point: Appraisers have no motive to apply bias—it is both unethical and illegal. Unlike others in a real estate transaction, Appraisers do not benefit financially from the outcome of a sale or the closing of a loan. Our sole responsibility is to deliver an objective, well-supported valuation. We serve as gatekeepers for lenders, ensuring that loans are backed by adequate collateral. For private clients, we help protect against overpaying for a property.
No Appraiser is willing to risk their license—or their career—by engaging in bias. The appraisal fee is simply not worth that risk.
We hope this landmark ruling will encourage homeowners to pause before filing lawsuits based on dissatisfaction alone. With this precedent in place, we anticipate a decline in frivolous claims and a renewed respect for the integrity of professional Appraisers.