What Is Appraisal?
An independent assessment of a property's market value conducted by a licensed appraiser. Lenders typically require an appraisal to ensure the loan amount doesn't exceed the property's value, protecting both themselves and the buyer from overpaying.
Appraisal across 4 exams
Appraisal appears on the following exams. Each defines it in the context candidates are tested on:
- Real Estate
- An independent assessment of a property's market value conducted by a licensed appraiser. Lenders typically require an appraisal to ensure the loan amount doesn't exceed the property's value, protecting both themselves and the buyer from overpaying.
- AZ Salesperson
- A professional opinion of a property's fair market value, typically conducted by a licensed appraiser using standardized methods and comparable sales data. Lenders require appraisals before approving mortgage loans.
- All-Lines Adjuster
- A formal process used when the insured and insurer disagree on the claim value, typically involving independent appraisers hired by each party who work to reach agreement. If appraisers cannot agree, an umpire is appointed to settle the dispute. Appraisal clauses are standard in property policies to resolve valuation disputes without litigation.
- RE Appraiser
- An unbiased professional opinion of the value of real property, developed by a qualified appraiser as of a specific date.