1. Who may perform an appraisal of real property for a lender?
Answer & explanation
Answer: D. Only licensed or certified appraisers perform appraisals. Licensees may prepare a CMA, which is not an appraisal.
valuation
appraisal
An appraisal is an unbiased professional opinion of a property's value as of a specific date, prepared by a licensed or certified appraiser. Appraisers use the sales comparison, cost, and income approaches, then reconcile them into a final value estimate. Lenders require appraisals for most mortgages, and federally related appraisals must follow USPAP standards and appraiser independence rules.
- Exam tip
- An appraisal is an estimate, not a guarantee, of value as of a single date. Only a licensed or certified appraiser prepares it; a CMA by an agent is not an appraisal.
- Example
- A lender orders an appraisal for a home under contract at $400,000; the appraiser values it at $395,000 using three recent comparable sales.
Related terms & state variants
Sources
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Last verified: 2026-10-23