Three sales support $520,000; the borrower's purchase contract is $505,000. May the appraisal conclude above the contract price?
Correct Answer
B) Yes — the opinion follows the market evidence, whatever the contract says
Why this is correct: The appraiser's value opinion must be based on market evidence and analysis, independent of the contract price. A contract is one piece of data to consider, but it does not set a ceiling or floor for the appraised value. Why the other choices are wrong: The contract does not cap the opinion; the appraiser must analyze it. Lender consent is not required to develop an opinion above the contract price. Splitting the difference is an arbitrary reconciliation method not based on evidence. Exam tip: The contract price is a comparable sale to be analyzed, not a constraint on your value conclusion.
Why This Is the Correct Answer
Why this is correct: The appraiser's value opinion must be based on market evidence and analysis, independent of the contract price. A contract is one piece of data to consider, but it does not set a ceiling or floor for the appraised value. Why the other choices are wrong: The contract does not cap the opinion; the appraiser must analyze it. Lender consent is not required to develop an opinion above the contract price. Splitting the difference is an arbitrary reconciliation method not based on evidence. Exam tip: The contract price is a comparable sale to be analyzed, not a constraint on your value conclusion.
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