Certified Residential Appraiser Practice Exam

Are Valuation Advisories provided by The Appraisal Foundation binding on real property appraisers?

1. True

2. False

3. Only in specific cases

4. Only for commercial appraisers

The correct answer is: False

Valuation Advisories issued by The Appraisal Foundation serve as guidance rather than binding mandates. They are designed to assist appraisers in understanding best practices and industry standards, but their recommendations are not enforceable regulations. Appraisers have the discretion to consider these advisories in conjunction with their own methodology and professional judgment. This means that while following the advisories can enhance the credibility and quality of an appraisal, they do not create legal obligations that an appraiser must adhere to in every instance. In contrast, binding regulations would require compliance and could result in penalties for non-adherence. Therefore, stating that these advisories are not binding accurately reflects their nature as supportive tools rather than enforceable rules.