California Real Estate Practice Exam

Appraisal fees:

1. are always a fixed amount.

2. are based on a percentage of the appraised value.

3. are set by the loan broker.

4. may vary.

The correct answer is: are always a fixed amount.

The assertion that appraisal fees are always a fixed amount is not accurate in the context of real estate appraisals. Appraisal fees can vary based on several factors, including the complexity of the property being appraised, the location, and the specific appraiser's fee structure. The correct understanding is that appraisal fees may vary. This variability is essential as it allows appraisers to adjust their fees based on the individual circumstances of each appraisal request. For instance, a more complex property or one located in a high-demand area might incur a higher appraisal fee than a simpler property or one in a less sought-after location. Variability in fees ensures that appraisers can be compensated fairly for the range of services and the expertise they provide depending on the particular appraisal assignment. Understanding the variability of appraisal fees is important for both buyers and real estate professionals in budgeting for costs associated with property transactions.