Appraisals, CMA, BPO

Question 1

What is an appraisal based on?

Answer 1

Established valuation methods and appraiser’s professional judgment

Question 2

Appraisal reports involving a federally related transaction must be prepared by a _____ or ____ appraised

Answer 2

State-certified or licensed appraiser

Question 3

Appraisers are paid a ___

Answer 3

Fee

Question 4

The appraiser fee is not based on the appraised value in order to prevent a ____

Answer 4

Conflict of interest

Question 5

When is a licensee allowed to prepare an appraisal?

Answer 5

As long as it’s not a federally related transaction

Question 6

Real estate licensees must abide by the ____ when preparing appraisals

Answer 6

USPAP (Uniform Standards of Professional Appraisal Practice)

Question 7

What is the USPAP?

Answer 7

Uniform Standards of Professional Appraisal Practice

Question 8

What is a CMA (Comparative Market Analysis)?

Answer 8

A marketing tool used by licensees to secure listings - it is not an appraisal

Question 9

Can sales associates perform a Broker Price Opinion (BPO) independently?

Answer 9

No, it has to be under the control and management of the employing broker

Question 10

If a sales associate performs a BPO, the compensation must be paid to the ___

Answer 10

Broker

Question 11

Does USPAP apply to BPOs?

Answer 11

No