Property ValuationIntermediateDelaware Exam
A Delaware appraisal determines the value of a residential property at $350,000. The bank's loan officer believes the value should be $390,000. Who has the authority to change the appraised value?
AThe bank's loan officer
BOnly the original appraiser, based on valid factual dataCorrect
CThe buyer if they disagree
DThe Delaware Real Estate Commission upon request
Why Only the original appraiser, based on valid factual data Is Correct
Answer B: Only the original appraiser, based on valid factual data
Only the appraiser may change the appraised value, and only based on valid factual data that was not previously considered. Lender pressure to inflate values violates FIRREA and Uniform Standards of Professional Appraisal Practice (USPAP).
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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