Property Valuation
In New Mexico, an appraiser must certify in their appraisal report that they:
AGuarantee the accuracy of the value opinion
BHave no undisclosed interest in the property, performed the analysis according to USPAP, and that the value opinion is not based on a predetermined conclusion✓ Correct
CConsulted with the lender before determining value
DUsed the highest comparable sale available
Explanation
USPAP requires appraisers to sign a certification in each appraisal report, disclosing their independence, their compliance with USPAP, the scope of their work, and that the value conclusion was formed without bias or predetermined outcome.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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