You’ve met Vladimir the appraiser. He likes to tell it like it is. Soon we'll learn more from Vladimir about the appraisal process. Let’s start by reviewing purpose. What purpose do Vladimir and other appraisers serve? To cause a sale to fall through To make a real estate agent's life miserable To sell a property To determine a property's value Yes! An appraiser’s job is to determine a property’s worth or value. Let’s talk more about appraisers and how they differ from real estate professionals. There are some very important differences between an appraiser and a real estate professional. Based on the information Vladimir provided in your resource, select the proper individual for each characteristic. Usually hired by the buyer or seller Real estate professional Appraiser Usually hired by the lender or buyer, or sometimes the seller Real estate professional Appraiser Determines what a buyer may pay for a property Real estate professional Appraiser Determines a property’s worth Real estate professional Appraiser Provides an estimate of value that may be influenced by the consumer Real estate professional Appraiser Provides unbiased estimate of value Real estate professional Appraiser Great work differentiating between the characteristics of an appraiser and a real estate professional. We’ve learned that appraisers determine a property’s worth or value. Let’s take a closer look at these values. As Vladimir tells you, an appraisal may determine many different values. Select the type of value applicable for each item. Price at which the property can be loaned on or sold for at a foreclosure sale Mortgage value Investment value Insured value Of great importance to a lender Mortgage value Investment value Insured value Return on investment a property may provide Mortgage value Investment value Insured value Cost to replace or rebuild a property Mortgage value Investment value Insured value Value of importance to insurance companies Mortgage value Investment value Insured value Great work differentiating the types of values. Value in use and assessed values are also types of value. Market value or fair market value implies certain conditions exist. According to Vladimir, what conditions does fair market value imply? Neither the buyer nor the seller is being forced into an agreement. Implied Not implied The buyer and seller are acting in their own best interests. Implied Not implied The property has had reasonable exposure to the market. Implied Not implied The buyer and seller are related. Implied Not implied The buyer is using cash or obtaining financing. Implied Not implied You got it. If any of the implied factors aren't true for a specific transaction, then the price may not represent fair market value. The terms appraisal, valuation, and evaluation are confused by many, according to Vladimir. Let’s see if you’re confused. Select the proper term for each condition. Unbiased estimate of value of a specific property on a specific date Appraisal Valuation Evaluation Process of forming an opinion of a property’s value Appraisal Valuation Evaluation Study of a property, potentially for land use or marketability