Free Pennsylvania Real Estate Practice Exam Practice Question
Which of the following descriptions BEST represents an appraisal?
Correct Answer: D
Rationale: An appraisal is fundamentally an opinion of value, reflecting a professional judgment based on various factors, including market conditions and property characteristics.
Option A, "an exact value," is misleading, as appraisals provide estimates rather than precise figures. Option B, "an estimate of sales price," is too narrow; appraisals assess value for various purposes beyond sales, such as financing or taxation. Option C, "a proof of value," suggests an absolute determination, which appraisals do not provide. Instead, they convey informed opinions based on analysis and expertise, making option D the most accurate representation.
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