Property Valuation
In Maryland, an automated valuation model (AVM) is:
AA substitute for a licensed appraisal in all lending situations
BA computer-generated estimate of value used for certain purposes but not a substitute for a full appraisal in most lending✓ Correct
CApproved by MREC as an acceptable form of appraisal
DUsed only for SDAT assessments
Explanation
AVMs provide quick value estimates using algorithms and data, but most regulated lending requires a full appraisal by a licensed appraiser. AVMs are used for lower-risk loan decisions and portfolio monitoring.
Related Maryland Property Valuation Questions
- In Maryland, an appraisal review involves:
- Which professional is required to perform an appraisal for a federally regulated mortgage transaction in Maryland?
- An appraiser finds that comparable sales in a Maryland neighborhood show a consistent upward trend of 0.5% per month. A sale from 4 months ago should receive a time adjustment of approximately:
- A property generates a net operating income (NOI) of $45,000. The market capitalization rate is 6%. What is the estimated value?
- An appraiser performing a residential appraisal in Maryland uses three comparable sales that sold 6 months ago. To adjust for market changes since the sales, the appraiser would make a:
- A property has a gross monthly rent of $2,400 and sold for $288,000. What is the gross rent multiplier (GRM)?
- Which approach to value is most commonly used by SDAT to assess residential property in Maryland?
- A Maryland residential property appraiser adjusts a comparable sale for a garage. The subject has a 2-car garage; the comparable has a 1-car garage. The adjustment to the comparable would be:
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