Property ValuationIntermediateAlaska Exam

In Alaska, a licensed appraiser must develop and report their opinion of value in a manner that is:

AAcceptable to the lender commissioning the appraisal
BCredible — meaning it is supported by market evidence and professional analysis consistent with USPAPCorrect
CWithin 5% of the purchase price
DBased primarily on the assessed value for property tax purposes, though specifics can vary by situation

Why Credible — meaning it is supported by market evidence and professional analysis consistent with USPAP Is Correct

Answer B: Credible — meaning it is supported by market evidence and professional analysis consistent with USPAP

Under USPAP, appraisers must produce credible appraisals — value opinions that are adequately supported by market evidence and professional analysis. A credible appraisal is one that a competent peer would consider well-supported.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

Key Property Valuation Terms in This Question

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