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Real estate glossaryNational exam concept

Appraisal

An appraisal is an independent, supportable opinion of value developed by a qualified appraiser for a stated property interest, effective date, intended use, and set of assignment conditions.

Exam area: Valuation and Market Analysis

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What does “appraisal” mean in real estate?

An appraisal is an independent, supportable opinion of value developed by a qualified appraiser for a stated property interest, effective date, intended use, and set of assignment conditions.

How is “appraisal” different from the closest wrong answer?

An appraisal is a regulated valuation service. A comparative market analysis helps a broker advise on listing or offering strategy and is not represented as an appraisal.

What is the Georgia-specific rule?

Georgia separately regulates real estate appraisers. A real estate license alone does not authorize a broker to hold a CMA or BPO out as an appraisal.

Worked exam example

Scenario

A lender engages a licensed or certified appraiser to develop a market-value opinion for underwriting a residential mortgage.

What is the most common exam trap?

Trap correction

A detailed report prepared by a broker does not become an appraisal simply because it contains adjustments and comparable sales.

Original exam check

Apply the definition

A lender needs an independent opinion of market value to underwrite a mortgage. The listing broker offers a detailed report with comparable sales and adjustments. Which statement is accurate?

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Related terms to learn next

Comparative market analysis (CMA)

A comparative market analysis is a broker's analysis of relevant market data and comparable properties to help a seller choose a listing strategy or a buyer evaluate an offer.

Broker price opinion (BPO)

A broker price opinion is a real estate broker's estimate of a property's probable selling price, often prepared for a lender, servicer, investor, or other client for a permitted purpose.

Automated valuation model (AVM)

An automated valuation model is a computer-based system that estimates property value by applying statistical or machine-learning methods to public records, property characteristics, and market data.

Fair market value

Fair market value is the amount a knowledgeable, willing buyer and seller would agree upon in an arm's-length transaction when neither is compelled and both have reasonable exposure to the market.

Recommended next complete lesson

Continue with Valuation and Market Analysis complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.
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