Upon inspecting a property, an appraiser believes the value is around $200,000. Based on this belief, the appraiser searches for comparable sales that are in a sale price range from $190,000 to $210,000. What type of bias is most likely demonstrated in this situation?

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

Answer: (A)

Anchoring bias shows up when an initial value or reference point heavily shapes all subsequent judgments. In this situation, the appraiser’s belief that the property's value is around 200,000 becomes a mental anchor. From there, they search for comparables only within a narrow range ($190,000 to $210,000), which means the data they consider and how they interpret it are pulled toward that starting number rather than being based on a wider, objective market view. This demonstrates how the first impression can unduly steer the appraisal process.

While narrowing the search could also be tied to selection bias, the core issue here is the anchor's influence on the data considered. It isn’t about seeking information to confirm a belief (confirmation bias) as directly as it is about letting the initial estimate dictate the scope of the data used.