California Real Estate Practice Exam

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An appraisal is best described as a(n):

estimate of value
opinion of listing price
opinion of selling price
opinion of value

The correct answer is: estimate of value

An appraisal is best described as an estimate of value because it involves a professional judgment made by a licensed appraiser regarding the worth of a property based on various factors, including recent sales data, property conditions, and market trends. This estimate is typically used for various purposes, such as securing financing, determining property tax assessments, or during property sales negotiations. While the terms “opinion of value” and “opinion of listing price” could be associated with appraisals, they do not precisely capture the comprehensive nature of what an appraisal entails. An appraisal focuses specifically on determining the fair market value, which is effectively an estimate rather than a definitive price for listing or selling.