Real Estate Appraisal Practice Exam

A desktop appraisal or streamlined appraisal is the correct choice for foreclosure purposes primarily because it provides a quicker and more cost-effective way to estimate a property's value during the foreclosure process. These types of appraisals usually involve less on-site inspection and rely more on existing data, recent property sales, and market trends rather than a comprehensive full analysis.

This approach is particularly useful in foreclosure situations where timelines can be tight, and the focus is on efficiently getting a reliable estimate to initiate proceedings or asset sales. The goal is to expedite the process while still ensuring that the valuation is based on adequate information.

In contrast, a full market appraisal, while thorough, consumes more time and resources, making it less ideal in urgent foreclosure situations. Similarly, a comparative market analysis is typically used to provide a quick snapshot of property values and may not meet the formal requirements of lenders in foreclosure scenarios. Lastly, a cost appraisal focuses on the cost to replace or reproduce a property, which does not directly reflect the current market-driven value necessary for foreclosure proceedings.