Question

While it is often sufficient to rely on informal methods of estimating the market value of real estate assets, the complexity and large dollar value of many real estate decisions dictate that formal estimates based on methodical collection and analysis of relevant market data should be utilized. The unbiased written estimate of the market value of a property is commonly referred to as a(n) __________.A) arm's length transaction
B) appraisal
C) property adjustment
D) reconciliation

Answer 1

Answer: Appraisal

Explanation:

To be able to get the right information about the value of a property to be sold an appraisal has to be conducted on the building. An appraisal of a property is simply a proper evaluation of that property's current market value before it's sold.

Answer 2

Answer:

B) appraisal

Explanation:

In real estate, an appraisal is a real property valuation that must be carried out by a certified property appraiser. A certified property appraiser is a trained professional who is licensed and belongs to the Appraisal Institute.

There are even different types of appraisers:

1. Licensed real property appraiser: can appraise 1 to 4 non-complex properties with total value of $1 million, or 1 to 4 complex properties with total value of $250,000
2. Certified residential real property appraiser: can appraise 1 to 4 residential units, no price limit or complexity requirement.
3. Certified general real property appraiser: can appraise all types of properties.