Property Valuation
When a Colorado appraiser concludes a value of $425,000 and the owner's purchase price was $450,000, the appraiser should:
AAdjust the value to match the purchase price to satisfy the lender
BReport $425,000 as the appraisal conclusion and let the parties decide how to proceed✓ Correct
CAverage the two amounts for a final value of $437,500
DRefuse to complete the appraisal since the values differ
Explanation
An appraiser must report their independent value conclusion regardless of the purchase price. 'Hitting the number' to match a purchase price is called appraisal fraud.
Related Colorado Property Valuation Questions
- In Colorado, an appraiser performing a 'desk appraisal' (or desktop appraisal) relies primarily on:
- A comparable sold for $400,000 and has a 2-car garage worth $15,000 that the subject lacks. The appraiser should adjust the comparable by:
- A Colorado appraiser calculates the value using the cost approach as follows: land value $80,000; replacement cost new $350,000; accrued depreciation 20%. What is the indicated value?
- Which appraisal approach is most appropriate for a special-use property such as a church or school in Colorado?
- External obsolescence (economic obsolescence) in a Colorado property is best described as:
- The principle of 'highest and best use' in Colorado appraisal means:
- A Colorado appraiser identifies a 'plottage value' for assembling multiple smaller parcels into one larger tract. This is also called:
- USPAP (Uniform Standards of Professional Appraisal Practice) requires all licensed Colorado appraisers to:
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