Question 1

What is the definition of 'market value' in real estate appraisal?

Accepted Answer

Market value is the most probable price a property would sell for in a competitive, open market under fair conditions, with both buyer and seller acting knowledgeably and without duress.

Question 2

What is the difference between 'market value' and 'market price'?

Accepted Answer

Market value is the estimated worth of a property under ideal conditions, while market price is the actual amount paid in a specific transaction, which may differ due to atypical circumstances.

Question 3

Which federal law regulates the qualifications and licensing of real estate appraisers?

Accepted Answer

FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act of 1989) established federal appraisal standards and created the Appraisal Subcommittee to oversee state licensing of appraisers.

Question 4

What are USPAP standards in real estate appraisal?

Accepted Answer

USPAP (Uniform Standards of Professional Appraisal Practice) are the nationally recognized ethical and performance standards that licensed appraisers must follow when conducting appraisals.

Question 5

What is a Comparative Market Analysis (CMA) and who typically performs it?

Accepted Answer

A CMA is an informal estimate of a property's market value based on recent sales of similar properties, typically performed by a real estate salesperson or broker to help price a listing — not a formal appraisal.

Valuation & Appraisal – New York Real Estate Salesperson Exam

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