Property Valuation
In Minnesota, an appraisal performed for mortgage lending purposes on a federally related transaction must be completed by:
AAny licensed real estate agent
BA Minnesota-licensed or certified appraiser✓ Correct
CThe county assessor
DA CPA with real estate experience
Explanation
Federal law (FIRREA) and Minnesota regulations require that appraisals for federally related mortgage transactions be performed by a Minnesota-licensed or certified appraiser. Appraisers are regulated separately from real estate licensees by the Department of Commerce.
Related Minnesota Property Valuation Questions
- A Minnesota property with significant deferred maintenance (unmaintained exterior, outdated systems, visible wear) would be described in an appraisal as having what condition rating?
- Scarcity is a factor in determining real estate value in Minnesota because:
- The principle of progression holds that:
- 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?
- In Minnesota, which appraisal principle explains why a property in a declining neighborhood may sell for less than its intrinsic worth?
- Assessed value for Minnesota property taxes is typically:
- The capitalization rate (cap rate) is used in the income approach and is calculated as:
- In Minnesota, 'functional utility' as an appraisal concept refers to:
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