13. Which of the following property valuation estimates or reports would have to be prepared by a licensed or certified appraiser?
Answer: C
A reconciliation report for an FHA loan must be prepared by a licensed or certified appraiser.
A reconciliation report for an FHA loan requires the expertise of a licensed or certified appraiser due to the specific regulatory requirements associated with Federal Housing Administration (FHA) financing. This ensures that the appraisal meets the necessary standards and accurately reflects the property's value.
A) a broker's price opinion
A broker's price opinion (BPO) is typically prepared by a real estate broker and does not require a licensed or certified appraiser. BPOs are often used for quick assessments of property value but lack the formal valuation process mandated for FHA loans.
B) a comparative market analysis
A comparative market analysis (CMA) is conducted by real estate professionals to estimate a property's value based on comparable sales in the area. Like BPOs, CMAs do not require a licensed or certified appraiser and are generally used for listing or pricing decisions rather than formal appraisals.
C) a reconciliation report for an FHA loan
A reconciliation report for an FHA loan must be prepared by a licensed or certified appraiser. This is due to the stringent requirements set forth by the FHA, which necessitate that all appraisals for financing adhere to specific standards to protect both lenders and borrowers.
D) a value analysis for a non-residential property valued below $250,000
A value analysis for a non-residential property valued below $250,000 may not require a licensed or certified appraiser, depending on the context and local regulations. Such analyses can sometimes be performed by qualified individuals who are not certified appraisers, making this option incorrect in terms of mandatory certification.
Conclusion
The necessity for a reconciliation report for an FHA loan to be prepared by a licensed or certified appraiser distinguishes it from the other options, which do not require formal appraisal credentials. Options A, B, and D can be completed by non-appraisers, while option C's regulatory requirements emphasize the importance of professional appraisal standards in federally-backed loans. Thus, option C is definitively the correct choice.