USPAP 15-Hour Course Practice Test 2025 – Comprehensive Exam Prep

When determining market value, the appraiser's personal opinion is typically not considered because market value is derived from objective criteria rather than subjective views. Market value is based on what a knowledgeable buyer would be willing to pay a knowledgeable seller in an arm's-length transaction, reflecting the current state of the real estate market, the characteristics of the property, and data gathered from comparable sales.

Personal opinions may introduce bias and inconsistency, as they are influenced by individual experiences, feelings, or preconceived notions rather than established methodologies and documented evidence. In the appraisal process, adhering to accepted standards and guidelines, such as those outlined in USPAP, is vital to ensure the resulting value is fair, reliable, and defensible.

Other aspects like current market conditions, potential earning capacity, and comparable sales data are essential components of an effective valuation process, as they provide tangible evidence and insights that help in arriving at an accurate market value.