Property Valuation
A Minnesota appraiser is told by a lender to 'make the value work' to support a specific purchase price. The appraiser should:
ATry to find comparables that support the requested value
BProvide an independent, objective opinion regardless of lender pressure✓ Correct
CReport the request only if the value cannot be supported
DProvide a preliminary value estimate before completing the appraisal
Explanation
Appraiser independence is required by USPAP and federal law (FIRREA, Dodd-Frank). An appraiser must provide an objective, independent opinion of value without pressure from lenders or other parties to reach a predetermined value. Appraisal fraud (intentionally inflating or deflating values to serve another party) is a federal crime. Minnesota appraisers must refuse to accept assignments with predetermined value requirements.
Related Minnesota Property Valuation Questions
- An appraiser uses three comparable sales and makes adjustments. Comparable A adjusted to $310,000, B to $315,000, and C to $308,000. What is the reconciled value if the appraiser weights them equally?
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