Real Estate Appraisal Practice Exam

Question: 1 / 400

What is the primary purpose of an appraisal report?

To negotiate a sale price

To provide an estimate of property value

The primary purpose of an appraisal report is to provide an estimate of property value. This estimate is crucial for various stakeholders in real estate transactions, including buyers, sellers, lenders, and investors, as it helps determine how much a property is worth based on a comprehensive analysis of market conditions, comparable sales, property features, and other relevant data.

An appraisal report serves as an objective assessment conducted by a qualified appraiser, which can facilitate informed decision-making in transactions, support financing approvals, or assist in tax assessments. The focus is on accurately determining the fair market value to ensure that all parties are aware of a property's worth based on current market trends and data.

Other options, while related to real estate, do not encapsulate the essence of what an appraisal report is designed to achieve.

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To enforce building codes

To assess rental prices

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