Question 22 - Property Valuation and Appraisal Practice Test for the Real Estate License Exam

to assess the property’s value relative to its sales price, and use this to determine the risk of making the loan

to make sure that the home is worth way more than the sales price

to determine the term of the loan

to ensure that the property’s value is at least equal to the sales price, and not ever make the loan if it is below the sales price