Property Valuation
An appraiser must remain 'independent' of the transaction, meaning:
AThe appraiser should not live in North Dakota
BThe appraiser's compensation and conclusions must not be contingent on achieving a predetermined value✓ Correct
CThe appraiser should not know any local market participants
DThe appraiser must be from out of state
Explanation
Appraiser independence is a fundamental requirement under USPAP and federal law. The appraiser's compensation cannot be contingent on the value conclusion. Pressure from lenders, buyers, or sellers to reach a predetermined value violates independence standards and potentially FIRREA.
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