Home Appraisal Quiz

1. What is a home appraisal?

An inspection of the home's condition An estimate of the property's market value by a licensed appraiser A survey of the property lines An estimate of renovation costs

2. Who orders the appraisal in a mortgage transaction?

The buyer The seller The lender The real estate agent

3. What is the purpose of an appraisal in mortgage lending?

To determine the condition of the home To ensure the loan amount is supported by the property's value To determine property taxes To set the listing price

4. What is the sales comparison approach in appraisal?

Comparing the property to construction costs Comparing the property to recent sales of similar properties Comparing the property to rental rates Comparing the property to new construction

5. What happens if the appraisal comes in lower than the purchase price?

The sale automatically falls through The buyer may need to make up the difference in cash or renegotiate The seller must lower the price The lender increases the loan amount

6. What is an appraiser's license requirement?

No license required Must be licensed or certified by the state Only needs a high school diploma Must be a real estate agent

7. What is the cost of a typical home appraisal?

$100-$200 $300-$500 $1,000-$2,000 Free

8. What is an AMC in appraisal terminology?

Appraisal Management Company Appraisal Marketing Center Advanced Mortgage Certificate American Mortgage Council

9. What is a CVA (Certified Valuation Analyst)?

A type of appraisal A professional designation for business valuation A government appraisal credential A type of mortgage

10. Can a buyer attend the appraisal inspection?

No, never Usually not, but can be arranged with the appraiser Yes, always Only if the seller agrees

Quiz Results