Certified Residential Appraiser Practice Exam

Is the guidance provided by the Valuation Advisories binding?

1. Strictly binding

2. Advisory in nature

3. Only for certain appraisals

4. Recommended but not required

The correct answer is: Advisory in nature

The guidance provided by the Valuation Advisories is advisory in nature, meaning it serves to inform and guide appraisers but does not impose mandatory compliance. This characteristic allows appraisers to exercise professional judgment and discretion in applying the advice based on the specific context of their assignments. Valuation Advisories are designed to enhance appraisal practices and promote consistency within the industry without being legally binding. Therefore, appraisers can take into account the advisories alongside other relevant factors and standards when conducting their appraisals, but they are not required to adhere to them strictly. This flexibility supports appraiser independence and the application of individual expertise.