Property Valuation
An Oklahoma appraisal that comes in below the contract price can result in:
AThe transaction proceeding at the contract price regardless
BA renegotiation between buyer and seller, the buyer making up the difference in cash, or the termination of the transaction✓ Correct
CThe lender automatically increasing the loan amount
DOREC requiring a new appraisal
Explanation
A low appraisal means the lender will only lend based on the appraised value (not the higher contract price). The parties must either renegotiate the price down, the buyer pays the difference in cash, or the contract may be terminated under an appraisal contingency.
Related Oklahoma Property Valuation Questions
- The gross rent multiplier (GRM) method estimates value by:
- Reproduction cost in the cost approach is:
- An Oklahoma appraiser who uses a comparable sale that is more than one mile from the subject property in a densely developed suburban area should:
- An Oklahoma REO (real estate owned) property — one acquired by a bank through foreclosure — will likely be:
- An Oklahoma appraiser's final opinion of value in an appraisal report is expressed as:
- Functional obsolescence in an Oklahoma property refers to:
- When comparing comparable sales for a single-family home in Oklahoma, an appraiser makes adjustments for differences. Which statement about adjustments is correct?
- When an appraiser uses the cost approach, what is added to the site value to determine the property's total value?
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