Property Valuation
An NJ appraiser concludes a value of $425,000 for a home but the client asks the appraiser to 'hit' the contract price of $450,000. The appraiser should:
AAdjust the value upward to accommodate the client
BMaintain their independent opinion of $425,000 and refuse to alter it based on client pressure✓ Correct
CAverage the two figures and report $437,500
DReport $450,000 to avoid losing the client
Explanation
Appraisers must maintain independence and objectivity. Altering an appraisal opinion to match a predetermined value requested by a client violates USPAP, federal law (FIRREA), and NJ appraiser licensing standards, and can constitute appraisal fraud.
People Also Study
Related New Jersey Questions
- A NJ appraiser preparing a Uniform Residential Appraisal Report (URAR, Form 1004) for a single-family home is completing what type of appraisal?Property Valuation
- In NJ, an appraiser using the cost approach to value a historic home would use which reproduction cost method?Property Valuation
- An NJ appraiser preparing a market value opinion for a proposed new residential subdivision would conduct which type of study?Property Valuation
- A NJ appraiser completes an appraisal for a lender on a purchase transaction. Who is the appraiser's client?Property Valuation
- A NJ real estate contract provision stating that the buyer agrees to purchase the property 'subject to satisfactory appraisal at or above the purchase price' is a(n):Contracts
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Study This Topic
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →