Appraisal
National Real Estate Exam glossary · Valuation
Definition
An independent, impartial, and supportable opinion of a defined value (usually market value) for a specified property as of a specific date, prepared by a licensed or certified appraiser in conformity with USPAP. It is distinct from a broker's CMA or BPO, which are not appraisals and may not be represented as such.
Appraisal in plain English
An appraisal is a professional, unbiased, well-supported opinion of what a specific property is worth (usually its fair market value) on a specific date, produced by a licensed or certified appraiser following a strict national rulebook called USPAP. The key words are 'independent' and 'supportable' — the appraiser has no stake in the outcome and must back the number with real evidence, not a gut feeling. This is different from a CMA or BPO, which are quicker price estimates an agent might whip up to help price a listing; those are useful, but they are NOT appraisals, and by law nobody is allowed to pass them off as one. Think of it like the difference between an official lab test and a helpful guess from a knowledgeable friend — both have value, but only one carries the formal weight.
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