Property Valuation
In NC, an appraiser who is pressured by a lender to 'hit' a predetermined value should:
AComply to maintain the client relationship
BRefuse to adjust the value opinion and report the pressure to the lender's compliance department and possibly to relevant authorities✓ Correct
CResign from the assignment only
DAdd a note of objection in the report and proceed
Explanation
Coercion to adjust an appraisal to a predetermined value violates USPAP, federal law (AIR — Appraiser Independence Requirements), and state licensing laws. The appraiser must refuse and may need to report the pressure.
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- The Uniform Standards of Professional Appraisal Practice (USPAP) is issued by:Property Valuation
- A final value opinion in a real estate appraisal is derived by:Property Valuation
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.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
State-Specific Concepts
Continuing Education
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