Property Valuation
An appraiser who receives pressure from a lender to 'hit' a specific value should:
AAccommodate the request since lenders are important clients
BRefuse to adjust the value conclusion to meet a predetermined number — this would violate USPAP✓ Correct
CAccept the job only if the target value is within 5% of their estimate
DContact TREC for permission to adjust the value
Explanation
USPAP requires appraisers to develop opinions of value independently and objectively. Adjusting a value conclusion to accommodate a lender's (or anyone else's) predetermined number is appraisal fraud and a serious violation of USPAP and federal law.
Related Tennessee Property Valuation Questions
- In the sales comparison approach, an appraiser makes a negative adjustment to a comparable sale when:
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- When appraising a Tennessee property using the income approach, 'effective gross income' is calculated as:
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- In Tennessee, an appraiser estimates a property's value is $285,000 via the sales comparison approach and $292,000 via the cost approach. The final reconciled value will be:
- In Tennessee, an appraiser who knowingly makes a fraudulent appraisal may face:
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