Property Valuation
An appraiser for a Washington bank is appraising a small apartment building that the borrower claims is worth $1.2 million. The appraiser's independent analysis indicates a value of $950,000. Under USPAP, the appraiser must:
AAdjust the value to $1.2 million to facilitate the loan
BReport the value at $950,000 based on their independent analysis, regardless of the borrower's claim✓ Correct
CSplit the difference and report $1.075 million
DDiscuss the discrepancy with the lender before completing the appraisal
Explanation
USPAP requires appraisers to provide independent, objective, and impartial opinions of value. An appraiser must never adjust their value conclusion to meet a borrower's desired value or a lender's loan amount.
Related Washington Property Valuation Questions
- The Washington Department of Revenue uses what method to verify real estate sale prices for REET calculation?
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