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Question 1
What is the definition of 'market value' as used in real estate appraisal?
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?
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?
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)?
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?
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.