An appraiser anchors on a 550,000 sale to determine value and ignores other comps.

• A. Confirmation bias
• B. Cultural bias
• C. Anchoring bias
• D. Selection bias

Answer: (C)

Anchoring bias occurs when the first figure encountered becomes the reference point for all subsequent judgments, and adjustments to new information are insufficient. In this scenario, the appraiser fixates on a 550,000 sale as the value and then ignores other comparable data. That single anchor heavily shapes the valuation, making it likely that other relevant comps and differences in property features, market conditions, or time of sale are not adequately considered or adjusted for. The result is a biased value that centers on the initial price rather than a balanced synthesis of all credible data, which undermines appraisal accuracy and standards requiring consideration of all relevant information.

The other terms describe different issues: cultural bias involves prejudice based on culture, and selection bias involves a non-representative sample influencing results. Confirmation bias would be about favoring information that confirms a preconception, but the core issue here is fixating on the first price and failing to adjust appropriately, which is the essence of anchoring bias.