Certified Residential Appraiser Practice Exam

Is an appraiser allowed to base their appraisal fee on the owner's estimate of the property’s value?

1. Yes, if the owner agrees

2. No

3. Only for commercial properties

4. Only with additional disclosures

The correct answer is: No

An appraiser is not allowed to base their appraisal fee on the owner's estimate of the property's value because this practice can create a conflict of interest and compromise the appraiser's objectivity and independence. The integrity of the appraisal process relies on the appraiser providing an impartial, unbiased value based on their analysis of the property and relevant market data, rather than being influenced by the owner's expectations. By keeping the appraisal fee separate from the anticipated value, appraisers maintain ethical standards and ensure that their judgment in determining property value is free from outside pressures. This helps protect the credibility of the appraisal function and reinforces public trust in the valuation process.