Which party typically conducts an appraisal?

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Study for the McKissock Basic Appraisal Principles Test. Utilize flashcards and multiple choice questions, each enriched with hints and explanations, to master the key concepts of the appraisal process and prepare effectively for your exam!

Multiple Choice

Which party typically conducts an appraisal?

Explanation:
An appraisal is a formal, objective estimate of value prepared by a licensed appraiser who follows USPAP (Uniform Standards of Professional Appraisal Practice). This ensures the value is credible, methodical, and free from conflicts of interest, which lenders rely on when making lending decisions and evaluating a property's market worth. Real estate brokers may provide opinions of value or market analyses, but these are not formal appraisals. Mortgage underwriters use the appraisal report to assess loan risk, not to determine value themselves. The seller’s attorney handles legal aspects of the transaction, not valuation.

An appraisal is a formal, objective estimate of value prepared by a licensed appraiser who follows USPAP (Uniform Standards of Professional Appraisal Practice). This ensures the value is credible, methodical, and free from conflicts of interest, which lenders rely on when making lending decisions and evaluating a property's market worth. Real estate brokers may provide opinions of value or market analyses, but these are not formal appraisals. Mortgage underwriters use the appraisal report to assess loan risk, not to determine value themselves. The seller’s attorney handles legal aspects of the transaction, not valuation.

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