Certified Relocation Professional (CRP) Practice Exam

In relocation appraisal, what must the appraiser adjust the sales price of similar properties based on?

1. The buyer

2. The lender

3. Transferee

4. FNMA

The correct answer is: The buyer

In relocation appraisal, the appraiser must adjust the sales price of similar properties based on the characteristics of the buyer. This is because the buyer's preferences, motivations, and financial situation can significantly influence the value of a property. For instance, a buyer who is more motivated to purchase quickly may be willing to pay more than the market value, while other buyers might negotiate lower prices based on their needs or circumstances. Factors such as the buyer's financial capacity, urgency of the sale, and unique requirements play a key role in how appraisal values are determined. Unlike other entities or stakeholders in the transaction, the buyer directly reflects market dynamics and buyer behavior, which are essential in establishing comparable property values that the appraiser uses as a foundation for their assessments. In contrast, the lender, transferee, and FNMA (Fannie Mae) may have specific guidelines or requirements in the appraisal process but do not directly dictate adjustments based on the intrinsic characteristics of individual buyers.