Colorado Sales License Practice Test

Question: 1 / 400

What is the primary function of a real estate appraisal?

To provide an unbiased estimate of the property's market value.

The primary function of a real estate appraisal is to provide an unbiased estimate of the property's market value. This involves an objective assessment of the property based on factors such as location, condition, comparable properties, and current market trends. Appraisers use established methods and guidelines to ensure that their estimates reflect the true value of the property within the context of the current market.

This unbiased evaluation is crucial for various stakeholders in real estate transactions, such as buyers, sellers, lenders, and investors, as it helps them make informed decisions. A reliable appraisal can facilitate a fair sale price, ensure that lenders are protected in their investments, and reassure buyers and sellers that the value of a property is based on established criteria rather than subjective opinions.

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To increase the selling price of a property.

To advise on renovations required for increasing property value.

To inform buyers about neighborhood safety.

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