Free 5-question sample test with instant feedback. See how ready you are.
Question 1
What is the definition of 'market value' in real estate appraisal?
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'?
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?
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?
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?
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.