Property Valuation
A Texas buyer makes a low offer on a property because comparable sales are lower than the list price. The seller counters that their property is special and worth more. The appraiser's role is to:
AValidate the seller's pricing to facilitate the transaction
BProvide an independent opinion of market value based on objective data, regardless of the contract price✓ Correct
CAlways value the property at the contract price if the parties agreed
DAverage the buyer's and seller's positions
Explanation
An appraiser's role is to provide an independent, objective opinion of market value based on market evidence, not to validate contract prices. If comparable sales support a lower value than the contract price, the appraiser must report that value. A low appraisal can affect financing but accurately reflects market reality.
Related Texas Property Valuation Questions
- An appraiser in Houston performing an appraisal on a property located in a rapidly gentrifying neighborhood should give the most weight to:
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- Gross Rent Multiplier (GRM) is calculated as:
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- In Texas, the excess land technique in appraising a property means:
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