An independent opinion of value produced by a licensed or certified appraiser
It is an opinion supported by data and produced under professional standards, and it is prepared by someone with no interest in the transaction. Where a loan is federally related, whether an appraisal is required and who may perform it are regulated matters.
How the exam asks about it
The line the exam guards: a comparative market analysis is not an appraisal, and a licensee calling one an appraisal is a practice violation, not a wording preference.
A broker’s written opinion of likely selling price, usually prepared for a lender
Commonly requested by lenders and servicers in default, short sale and portfolio situations. Whether a BPO may be given, for what purpose and for what fee is governed by state law, and several states restrict them where an appraisal is required.
How the exam asks about it
Third in the sequence: appraisal, CMA, BPO. Knowing which is regulated, which is a sales tool, and who the audience is answers most items.
A licensee’s pricing analysis based on comparable sales and current listings
A working tool for a listing conversation or an offer strategy. It uses much the same comparable data an appraiser would, and it is not produced under appraisal standards, not independent of the transaction, and not an opinion of value in the regulated sense.
How the exam asks about it
"How does a CMA differ from an appraisal?" is a recurring item and the answer is always about who prepares it and under what standards.
Weighing the value indications from each approach to reach one final opinion
The appraiser weights whichever approach the data supports best for this property and states a single opinion. It is judgment, not arithmetic, and it deliberately is not an average.
How the exam asks about it
Averaging the three approaches is the standard wrong answer, because it gives equal weight to an approach the appraiser knows is weak for this property.
Independent exam preparation. Real Estate Exam Bank is not a state-approved pre-licensing course and completing anything here does not satisfy any state education requirement. Not affiliated with, endorsed by, or authorized by any state real estate commission, Pearson VUE, or PSI. Practice questions here are original study material, not the official exam.