Casa Academy

Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.

Real Estate Appraisal

A real estate appraisal is an independent opinion of a property's market value supported by data and one or more valuation approaches, prepared by a qualified appraiser for lending, estate settlement, tax appeal, or litigation when an unbiased value estimate is required.

Exam context

Appraisal is independent value opinion using comparison, cost, and/or income approaches. CMA is broker market analysis, not full appraisal. Lender requires appraisal for collateral verification.

Approaches to value

Appraisers may use the sales comparison (market data), cost, and income approaches, reconciling indicated values into a final opinion. Lenders order appraisals for mortgage underwriting to confirm collateral supports the loan amount. Broker price opinions and CMAs support pricing but are not USPAP appraisals unless performed by licensed appraisers under appraisal standards.

Regulation and use

Federal lending rules require independent appraisals on many residential transactions. Appraisal management companies coordinate ordering. Agents explain appraisal contingencies in purchase contracts and should not pressure appraisers. Uniform Standards of Professional Appraisal Practice govern ethics and methodology.

Examples

  • Purchase loan underwriting

    A lender orders an appraisal before funding a $425,000 loan. The appraiser values the home at $418,000, requiring the buyer to increase down payment or renegotiate.

  • Income property review

    An appraiser capitalizes stabilized net operating income from a fourplex using market cap rates under the income approach for a refinance.

Keep studying

Practice real estate appraisal questionsEnroll in pre-licensing

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