A TAXONOMIC FIELD INVESTIGATION INTO INDUCED BIAS IN RESIDENTIAL REAL ESTATE APPRAISALS

A taxonomic approach to field research was developed and utilized to support empirical and experimental research findings into the impact that incentives/pressures to overvalue have on systematic valuation bias. An expected no-bias population was defined and valuation judgments from actual, real-world appraisals were statistically tested against it. The judgments of appraisers presented with no incentive/pressure to over-value were consistent with the no-bias population, while the judgments of appraisers presented with incentive/pressure to over-value were significantly incompatible with the defined no bias population.