Property ValuationIntermediateColorado Exam

A Colorado appraiser completing an appraisal for a federally related transaction must be:

AAny licensed real estate broker
BA licensed or certified appraiser per FIRREA requirementsCorrect
CA member of the Appraisal Institute only, as a general rule
DApproved by the specific lender only

Why A licensed or certified appraiser per FIRREA requirements Is Correct

Answer B: A licensed or certified appraiser per FIRREA requirements

FIRREA requires that appraisals for federally related real estate transactions be performed by licensed or certified appraisers in accordance with USPAP. This is enforced through state licensing boards like Colorado's Board of Real Estate Appraisers.

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 Colorado Real Estate Questions

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

Take the Free Colorado Quiz →