Property Valuation
In Pennsylvania, an appraiser who determines a property is worth less than the contract price should:
AAdjust their value to match the contract price to avoid delays
BReport the value accurately based on market evidence — the appraiser's role is independent value assessment, not justifying a price✓ Correct
CNotify PREC of the discrepancy
DRequire the seller to reduce the price before submitting the report
Explanation
An appraiser's fundamental obligation under USPAP is to form and report an unbiased, independent opinion of value based on market evidence. Adjusting the opinion to match a contract price, lender expectation, or other pre-determined result is called 'hitting the number' — a serious ethical violation and potential fraud.
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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