Certified Residential Appraiser Practice Exam

An appraisal that integrates the full effect of known environmental contamination is categorized as what?

1. A standard appraisal

2. A limited appraisal

3. An affected property appraisal

4. A contaminated site appraisal

The correct answer is: An affected property appraisal

An appraisal that integrates the full effect of known environmental contamination is categorized as an affected property appraisal. This type of appraisal specifically addresses how environmental factors, like contamination, influence the property's overall value. The appraiser needs to consider the extent of the contamination, potential liabilities, and any remediation efforts in order to accurately assess the marketability and worth of the property. This categorization reflects the unique challenges and considerations that arise when dealing with properties that are impacted by environmental issues. Unlike a standard appraisal, which focuses on typical market factors without specific regard to such environmental concerns, an affected property appraisal takes into account specific variables associated with contamination, including legal ramifications, remediation costs, and impacts on buyer perception. Limited appraisals and contaminated site appraisals may touch upon aspects of contamination, but they do not necessarily encompass the comprehensive evaluation of how all factors related to the contamination affect property value like an affected property appraisal does. Thus, understanding the implications of environmental issues is critical in making a complete and accurate property valuation in these circumstances.