Property Valuation
In NJ, an appraiser who appraises a property in which they have a financial interest is:
APermitted if the interest is disclosed
BViolating USPAP's Independence requirement, which prohibits appraisers from appraising properties in which they have a financial interest✓ Correct
CPermitted for properties they personally own
DRequired to do so as the property owner
Explanation
USPAP requires appraisers to be independent, objective, and impartial. Appraising a property in which the appraiser has a financial interest creates a conflict that violates the independence requirement, regardless of disclosure.
Related New Jersey Property Valuation Questions
- A NJ appraiser must maintain confidentiality about their appraisal report except when:
- The principle of substitution states that a buyer will pay no more for a property than:
- Effective age of a building differs from chronological age because effective age reflects:
- External (economic) obsolescence is considered incurable because:
- The principle of substitution, which underlies all three approaches to value, states that:
- The sales comparison approach to value is MOST appropriate for valuing:
- The principle of contribution in real estate appraisal states that:
- The principle of highest and best use requires that a property be used in the manner that is:
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