Property ValuationIntermediateAlaska Exam

In Alaska, an appraiser who is asked to value a property for a predetermined value is being asked to engage in:

AA legitimate market analysis
BPredetermined value appraisal — a serious USPAP violationCorrect
CA comparative market analysis, under typical circumstances
DA review appraisal

Why Predetermined value appraisal — a serious USPAP violation Is Correct

Answer B: Predetermined value appraisal — a serious USPAP violation

USPAP prohibits appraisers from accepting assignments with predetermined values or from being pressured to hit a target value. An appraiser must independently develop and report an unbiased opinion of value.

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

People Also Study

Study This Topic

Practice More Alaska Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Alaska Quiz →