When a Colorado appraiser concludes a value of $425,000 and the owner's purchase price was $450,000, the appraiser should:
Why Report $425,000 as the appraisal conclusion and let the parties decide how to proceed Is Correct
Answer B: Report $425,000 as the appraisal conclusion and let the parties decide how to proceed
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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Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
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