Difficulty: Medium

Average Score: 57%

Which of the following property valuation estimates or reports would have to be prepared by a licensed or certified appraiser?

Rationale

A reconciliation report for an FHA loan must be prepared by a licensed or certified appraiser.

A reconciliation report for an FHA loan is a formal appraisal document that requires adherence to specific regulations and standards, thus necessitating the expertise of a licensed or certified appraiser. This ensures the accuracy and compliance of the valuation for federal lending purposes.

A (a broker's price opinion) YOUR ANSWER

A broker's price opinion (BPO) is typically prepared by real estate brokers and does not require a licensed appraiser. BPOs provide an estimate of a property's value based on comparable sales and market conditions but lack the rigorous standards and legal requirements of a certified appraisal.

B (a comparative market analysis) YOUR ANSWER

A comparative market analysis (CMA) is conducted by real estate professionals to evaluate property values based on recent sales in the area. CMAs are not appraisals and do not require a licensed appraiser, as they are used primarily for setting listing prices rather than for formal lending or legal purposes.

D (a value analysis for a non-residential property valued below $250,000) YOUR ANSWER

While a value analysis for a non-residential property below $250,000 may not require a formal appraisal, it still can be completed by a licensed appraiser if needed. However, it does not have the same regulatory requirements as an FHA reconciliation report and can often be completed through less formal methods.

Conclusion

In summary, a reconciliation report for an FHA loan must be prepared by a licensed or certified appraiser due to the specific regulatory requirements involved in federal lending. In contrast, other valuation methods like broker's price opinions, comparative market analyses, and informal value analyses do not necessitate the same level of certification and can be performed by non-appraisers. This distinction is crucial for ensuring compliance and accuracy in property valuation within the lending framework.

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