Certified Pennsylvania Evaluator Practice Exam

What best describes an appraisal?

1. A guess of value based on personal opinion

2. An opinion of value that can be supported

3. A fixed value determined by law

4. A summary of property information

The correct answer is: An opinion of value that can be supported

An appraisal is fundamentally an opinion of value that is well-supported by evidence and professional methodologies. This definition highlights that appraisals are not arbitrary or merely personal feelings; rather, they are grounded in systematic analysis, including the evaluation of comparable properties, market conditions, and specific attributes of the property in question. This process involves applying recognized appraisal techniques and standards, which lend credibility and reliability to the opinion of value rendered by the appraiser. The appraiser uses verified data and appropriate market analytics to arrive at a conclusion that reflects the current market value of the property. Therefore, option B encapsulates the essence of what an appraisal is designed to accomplish, establishing a value that can be backed up by factual information and professional judgment. In contrast, other options do not align with this established understanding of appraisals. A guess based on personal opinion lacks the necessary rigor and substantiation that appraisals provide, and fixed values determined by law do not account for the dynamic nature of real estate markets. Additionally, a summary of property information is simply descriptive and does not convey a value assessment.