Property Valuation
An appraisal of a single-family home for a conventional purchase mortgage must typically be performed by:
AA licensed real estate broker
BA state-certified or state-licensed appraiser✓ Correct
CAn IDFPR-designated property assessor
DAny licensed professional with real estate experience
Explanation
Federal regulations require that appraisals for federally regulated mortgage transactions be performed by state-certified or state-licensed appraisers who hold the appropriate credential for the property type. In Illinois, appraisers are licensed by IDFPR under the Illinois Real Estate Appraiser Licensing Act.
Related Illinois Property Valuation Questions
- A property earns $48,000 in annual net operating income. An appraiser uses a 7.5% capitalization rate. What is the estimated value?
- What is 'scope of work' in an Illinois appraisal assignment?
- In real estate appraisal, 'plottage' (or assemblage) refers to:
- The gross rent multiplier (GRM) method of valuation is calculated as:
- A subject property has a two-car garage, while the best comparable has a one-car garage. Paired sales data suggests a two-car garage adds $15,000 in value. The appraiser should:
- The term 'arm's-length transaction' in real estate means:
- External obsolescence differs from functional obsolescence in that external obsolescence is caused by:
- In a buyer's market, an appraiser would expect to see:
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