Certified Residential Appraiser Practice Exam

Why is an inspection of the subject property important for an appraiser?

1. To fulfill legal requirements

2. To collect information relevant to determining value

3. To meet with property owners

4. To prepare promotional materials

The correct answer is: To collect information relevant to determining value

An inspection of the subject property is essential for an appraiser primarily to collect information relevant to determining its value. During the inspection, the appraiser assesses various factors that can influence the property's market value, including its size, condition, layout, and specific features such as amenities and upgrades. Additionally, the inspection allows the appraiser to observe the property's location and the surrounding environment, which can also play a significant role in value determination. This firsthand analysis is critical because it enables the appraiser to gather data that may not be available through public records or other secondary sources. Value estimation is a nuanced process that requires consideration of both quantitative data and qualitative characteristics of the property, making the inspection process invaluable in arriving at an accurate and justified valuation.