Question 1

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

Accepted Answer

Market value is the most probable price a property would bring in a competitive, open market under fair sale conditions, with buyer and seller acting knowledgeably and without undue pressure.

Question 2

Which federal agency regulates appraisal standards and appraiser qualifications through the Appraisal Foundation?

Accepted Answer

The Appraisal Subcommittee (ASC) oversees the Appraisal Foundation, which publishes USPAP (Uniform Standards of Professional Appraisal Practice) governing appraiser conduct and standards.

Question 3

What does USPAP stand for, and what is its primary purpose?

Accepted Answer

USPAP stands for Uniform Standards of Professional Appraisal Practice; it establishes the ethical and performance standards that appraisers must follow when conducting appraisals.

Question 4

What is the difference between an appraisal and a comparative market analysis (CMA)?

Accepted Answer

An appraisal is a formal, licensed opinion of value prepared by a certified appraiser following USPAP standards; a CMA is an informal estimate prepared by a real estate agent to help set a listing or offer price.

Question 5

What is 'assemblage' in real estate valuation?

Accepted Answer

Assemblage is the process of combining two or more adjacent parcels of land into one larger parcel, often resulting in a higher combined value than the sum of the individual values.

Valuation & Appraisal – Real Estate Broker Exam Prep

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