What term best describes bias that relies on personal perceptions instead of market data?

• A. Objective
• B. Rational
• C. Subjective
• D. Analytical

Answer: (C)

Subjective bias is when judgments are driven by personal opinions, feelings, or perceptions rather than verifiable market evidence. In valuation work, relying on your own views instead of data like comps, rents, cap rates, and recent sales means the estimate reflects personal bias rather than market reality. For example, someone might overvalue a property because they personally like the area, even if market data doesn’t support a premium. Objective would be grounded in facts and measurements, rational implies reasoning consistent with evidence, and analytical involves a structured, data-driven approach; all of these counteract personal bias, whereas subjective captures the influence of personal perception.