What common problem might be indicated by an appraiser rounding up to the next highest round number?

Selective rounding refers to the practice where an appraiser adjusts values to a rounded figure, which can reflect a tendency to favor certain results or to simplify the presentation of data. When an appraiser rounds up to the next highest round number, it may indicate a deliberate preference for a particular outcome, rather than accurately representing the calculated figure. This approach can sometimes lead to inflated valuation results, as it doesn’t necessarily align with the most objective presentation of the data.

Rounding figures, especially to enhance presentation, can become problematic when it's applied inconsistently or without a clear justification. In an appraisal context, this can affect the credibility of the valuation process and might result in a figure that doesn’t adequately reflect the market or property conditions. Therefore, recognizing selective rounding as a potential issue can help maintain the integrity of the appraisal exercise and ensure that valuations are based on sound calculations and evidence.