Illinois exam glossary
Appraisal: the value question, evidence and report
An appraisal answers a specific value question about a property interest as of a particular date. The date, rights and purpose can change the answer even when the building stays the same. For the exam, follow the work from defining that question to analyzing the evidence and communicating the result.
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The short answer
An appraisal is the development of an opinion of value for an identified assignment. The appraiser defines the property interest, intended use, relevant users, value definition and effective date, then gathers and analyzes appropriate evidence. Sales comparison, cost and income are the three main approaches to consider. Reconciliation weighs their relevance and reliability. The report communicates the result. Illinois's appraisal-report definition includes written or oral communication; particular laws, loan programs and assignments can require a written report.
Reviewed October 25, 2026. PSI national III.A covers appraisals and the appraisal process, III.B covers estimating value and III.C covers broker-product and AVM comparisons. The whole Valuation domain has 8 of 100 scored national broker questions, with no quota for this page. This lesson separates Illinois appraisal law from the specified federal banking, independence and valuation-copy rules. It is exam preparation, not an appraisal of an actual property or a complete professional standards manual.
Follow the assignment from question to report
- Define what is being valued. Identify the client, intended use and users, real property interest, type of value and effective date. Fee simple, leased fee and leasehold are different interests; an estate-date opinion is different from a current-date opinion.
- Set a sufficient scope. Decide what property observation, research, verification and analysis the assignment needs under the applicable requirements. An interior visit is not the entire appraisal, and the correct inspection scope cannot be inferred from the word appraisal alone.
- Check the evidence in context. Review relevant property, lease, zoning, comparable-sale, rent and expense information. Distinguish verified facts, uncertain information and any stated contrary-to-fact premise. Assumptions and limitations must not conceal the actual basis of the opinion.
- Analyze use and applicable approaches. Highest and best use considers legal permissibility, physical possibility, financial feasibility and maximum productivity under the assignment's premises. A potential legal change is not the same as approval already in place. Do not choose a use solely for its gross revenue. Consider sales comparison, cost and income and develop the work required for credible results and the assignment.
- Reconcile the indications. Give weight according to the quality and relevance of the evidence. A weak cost indication does not deserve an automatic one-third weight merely because three numbers appear. Explain the conclusion rather than choose a contract target.
- Communicate the actual result and its limits. Keep the effective date distinct from observation and report dates. The report should make the valued interest, intended use, scope, important assumptions and conclusion understandable. Use the required format for the assignment rather than assume that every form or database output is sufficient.
- Respect separate roles and rights. The payer is not automatically the client. A borrower's right to receive a valuation does not authorize pressure on its result. Loan approval, contract termination rights, inspection findings and statutory copy-delivery requirements are separate questions.
| Date | What happened | Exam meaning |
|---|---|---|
| Effective date | The value opinion applies | Controls the market and property facts considered |
| Inspection date | The property was observed | May differ from the value date |
| Report date | The report was completed or signed | Shows when results were communicated |
| Contract date | The parties formed or amended their deal | Transaction evidence, not automatically the value date |
The distinctions that matter
| Distinction | How it works | What to notice |
|---|---|---|
| Appraisal vs. appraisal report | The appraisal is the development of the value opinion. The appraisal report communicates an appraisal or appraisal-review result to the client after the assignment. Illinois includes written or oral reports in its definition; a specific assignment may still require writing. | Development versus communication. |
| Appraisal vs. CMA | An appraisal is performed under appraisal law and standards for a defined assignment. A CMA is a broker's comparative pricing analysis for a permitted brokerage purpose and is not an appraisal. | Appraiser product versus broker pricing product. |
| Appraisal vs. BPO | An appraisal develops an appraisal opinion under the applicable credential framework. A BPO is a broker's written price opinion with Illinois purpose and disclosure requirements. | Do not let the word opinion erase the licensing boundary. |
| Appraisal vs. AVM | An appraisal involves an appraiser's professional analysis and responsibility. An AVM uses a mathematical model and database to estimate value without becoming an appraisal merely because it outputs a number. | Professional assignment versus automated estimate. |
| Appraisal vs. home inspection | An appraisal analyzes value. A home inspection evaluates observable condition and systems within the inspection agreement's scope. | Value question versus condition question. |
| Appraised value vs. contract price | Appraised value is a supported opinion as of an effective date. Contract price is the amount the buyer and seller agreed for their particular transaction. | Opinion under conditions versus negotiated fact. |
| Effective date vs. report date | The effective date tells when the value opinion applies. The report date tells when the report was completed or signed. | Value date versus communication date. |
| Client vs. intended user | The client engages the appraiser for the assignment. An intended user is identified by the appraiser based on communication with the client at assignment inception. A person can be one, both, or neither. | Who engages versus who may rely as identified. |
| Extraordinary assumption vs. hypothetical condition | An extraordinary assumption concerns uncertain assignment-specific information treated as true as of the effective date; if false, it could affect the results. A hypothetical condition treats a known contrary-to-fact condition as true for analysis. Their use must be appropriate and clearly disclosed. | Uncertain fact assumed true versus known contrary-to-fact premise. |
| Inspection date vs. effective date | The inspection date records when the appraiser or data collector observed the property. The effective date controls the time context for value. | Observation time versus valuation time. |
| Reconciliation vs. averaging | Reconciliation weighs evidence according to relevance, reliability, and applicability. Averaging gives numbers a mechanical weight without that judgment. | Reasoned weighting versus arithmetic shortcut. |
| Appraisal review vs. new appraisal | An appraisal review develops an opinion about the quality of another appraiser's work. It becomes a different or additional valuation task if the reviewer also develops an independent value opinion. | Quality opinion versus property value opinion. |
Work through the facts
The effective date changes the answer
An appraiser inspects a house on May 20 and signs the report on May 24. The estate assignment asks for market value as of the owner's date of death on January 15.
- January 15 is the retrospective effective date required by the assignment.
- The May observation can help identify characteristics, but the appraiser must account for any condition change after January 15.
- Market evidence and conditions must be analyzed in the January 15 time frame.
Answer: The value opinion applies to January 15, not the inspection or report date.
The lease changes the property interest
An investor owns a retail building subject to a long-term below-market lease. The assignment asks for the value of the owner's leased fee interest.
- The owner's rights are affected by the existing lease.
- Fee-simple analysis as though the lease does not exist would answer a different question.
- The appraiser analyzes contract rent, market rent, lease term, options, expenses, and risk for the leased fee interest.
Answer: Value the leased fee interest defined in the assignment, not an assumed unencumbered fee simple interest.
Three approaches do not earn equal weight
For a stabilized 60-unit apartment property, well-supported income and sales-comparison analyses indicate $8.2 million and $8.0 million. A cost indication of $10.4 million relies on weak land and depreciation evidence.
- Investors typically focus on income and market transactions for this property type.
- The cost indication is less reliable if land, cost, or depreciation data are weak.
- Reconciliation weighs relevance and support rather than averaging all three figures to $8.87 million.
Answer: On the supplied facts, give greater weight to the stronger income and sales evidence and explain the reconciliation. These facts do not establish a single final value.
A factual correction is not value pressure
In a covered consumer mortgage transaction secured by the borrower's principal dwelling, an appraisal says two bedrooms. The permit, floor plan and photograph support three legal bedrooms. The broker submits those records through the proper channel without demanding a value.
- A material factual error can properly be identified through the client's correction or reconsideration process.
- Reliable documents and a clear explanation help the appraiser evaluate the issue.
- Demanding that value be raised to the contract price would cross into improper result pressure.
Answer: Submit the verified fact through the proper channel and let the appraiser decide its effect.
The borrower pays but is not necessarily the client
A buyer pays a $650 appraisal fee on the loan estimate. The lender orders the appraisal for underwriting and identifies itself as the client.
- Paying or reimbursing the cost does not determine who engaged the appraiser.
- The lender remains the client on the stated facts.
- The buyer can have federal rights to receive the valuation copy without gaining authority to direct the appraiser.
Answer: The lender is the client, while the buyer's copy rights arise separately.
A broker license does not turn a CMA into an appraisal
An Illinois broker is separately compensated to prepare a covered CMA for a seller and labels it an appraisal because it contains six comparable sales and an estimated price range.
- The amount of data does not decide the legal category.
- Illinois distinguishes the covered broker product from an appraisal. Its required broker disclosures and not-an-appraisal statement do not authorize a different professional capacity.
- Representing it as an appraisal misstates the service and professional capacity.
Answer: Call and disclose it as a CMA, not an appraisal, unless a properly credentialed appraiser performs a separate appraisal assignment.
Technology finds an outlier but does not resolve it
A regression tool flags one comparable as statistically unusual. The sale involved an adjacent-owner assemblage purchase at a premium that the database did not identify.
- The tool usefully calls attention to the observation.
- Transaction verification explains why the sale differs from typical buyer behavior.
- The appraiser decides whether to exclude, adjust, or limit the sale's weight and documents the reasoning.
Answer: Use technology as evidence support, then apply verified market analysis and professional judgment.
Uncertain information is different from a known false premise
For a current-date assignment, a building may have a structural issue that cannot yet be resolved. In a separate assignment, the client requests analysis as though a known defect did not exist. Assume the respective conditions can properly be used for each intended use.
- Treating the identified uncertain condition as satisfactory can involve an extraordinary assumption.
- Treating a known defect as absent is a hypothetical condition as of that effective date.
- Each premise needs appropriate support and disclosure; neither is permission to hide a defect.
Answer: Identify uncertainty versus a known contrary-to-fact premise before classifying the condition.
A completed AVM cannot simply wait for another report
For a covered first-lien dwelling application, the creditor accepts a written AVM report as complete. No timing waiver exists. It then withholds that report for several weeks solely because a separate appraisal is still being prepared.
- Regulation B covers relevant other written valuations as well as appraisals.
- A different report's unfinished status does not automatically postpone prompt delivery of the completed valuation.
- The creditor must apply the actual completion and delivery rules, not just wait for a closing package.
Answer: Waiting solely for the second valuation is not a substitute for the prompt-copy requirement.
A valid timing waiver and an uncompleted transaction
An applicant gives a valid valuation-copy timing waiver. The creditor later determines that the covered transaction will not be consummated.
- The waiver changes timing; it does not eliminate the copy right.
- The specified rule requires delivery no later than 30 days after that determination.
- Without a valid waiver, the ordinary prompt-delivery requirement remains relevant.
Answer: Apply the special 30-day deadline to the stated waived transaction that will not close.
The most revenue is not necessarily the highest and best use
Two proposed uses pass the legal and physical screens. The supplied feasibility analysis shows that Use A has higher gross revenue but cannot support its development and operating costs. Use B is financially feasible.
- Passing the first two screens does not establish financial feasibility.
- Higher gross revenue does not cure a negative feasibility conclusion.
- Maximum productivity is assessed among qualifying alternatives; the facts do not by themselves establish a final property value.
Answer: Do not select Use A solely because its gross revenue is higher.
The appraisal fee and the copy charge are different
In a covered application, assume a $650 appraisal-cost reimbursement is otherwise lawful and reasonable. The creditor also wants $25 to provide the required copy.
- Regulation B allows a reasonable appraisal-cost reimbursement subject to other law.
- It prohibits a separate charge for providing the required valuation copy, including copy-related costs.
- The $650 is an invented example, not a current market fee quote.
Answer: The assumed lawful appraisal fee does not authorize the separate $25 copy charge.
Mistakes to avoid
- Treating the appraisal as a guaranteed selling price An appraisal is an opinion under defined conditions and date, not a promise that a buyer will pay the conclusion.
- Assuming the contract price must equal appraised value Contract price reflects one negotiated deal; appraised market value applies a stated definition and market evidence.
- Calling the inspection the appraisal Property observation can be one task within the scope, while the appraisal includes the full development of the value opinion.
- Using report date as the effective date Read the report for the expressly stated effective date. It can be earlier or later than the report date.
- Assuming every assignment requires an interior inspection Inspection extent depends on the problem, required scope, applicable law, and client or program rules. The scope still must support credible results.
- Averaging three approaches Reconciliation gives weight according to evidence quality, applicability, and market behavior.
- Confusing payer with client Client status comes from the assignment relationship, not merely who reimburses the appraisal cost.
- Assuming possession of the report permits every use The report identifies the intended use and intended users. Receipt alone does not make a person an intended user.
- Treating a CMA as a cheaper appraisal A CMA is a different brokerage product with different authority, purpose, disclosures, and professional capacity.
- Calling an AVM an appraisal An automated estimate is a valuation product, but it does not become an appraisal merely because the output looks precise.
- Believing an appraisal approves the loan The appraiser provides a value opinion. The creditor separately decides underwriting, eligibility, collateral acceptance, and loan terms.
- Pressuring for the contract number Relevant facts and comparables may be submitted through proper channels, but no party should condition work or access on reaching a target value.
- Treating the highest and best use as whatever earns most revenue Highest and best use requires legal permissibility, physical possibility, financial feasibility and maximum productivity under the assignment's premises. Gross revenue alone is not the test.
- Assuming software owns the conclusion The appraiser remains responsible for selecting, understanding, testing, and disclosing technology use as required.
- Using protected-class composition as value evidence For residential real-estate-related appraisals, federal fair-housing law prohibits discrimination on its listed protected grounds. Use supported property and market evidence rather than discriminatory assumptions.
Check your understanding
These are original teaching questions, not recalled or predicted PSI questions. Answer first, then explain why the other choices fail.
1. Which statement best describes an appraisal?
- Any online estimate
- A building-code certificate
- A guarantee of the next sale price
- A supported value opinion for an identified assignment
Show answer and explanation
Answer: D. A supported value opinion for an identified assignment
The assignment identifies the property interest, value question, use, users, date, scope, and support.
2. An opinion applies to June 1, the property was observed June 5, and the report was signed June 8. What is the effective date?
- June 8
- The closing date only
- June 1
- June 5
Show answer and explanation
Answer: C. June 1
The effective date is the date to which the value opinion applies.
3. What should an appraiser do during reconciliation?
- Weigh indications according to relevance and reliability
- Always average all indications
- Select the number nearest contract price
- Use the cost approach in every assignment
Show answer and explanation
Answer: A. Weigh indications according to relevance and reliability
Reconciliation is a reasoned evaluation of the evidence, not a mechanical formula.
4. A lender engages the appraiser for underwriting and is identified as client. The borrower pays the appraisal fee. Who is the client on these facts?
- The seller solely because the seller owns the property
- The lender
- The borrower solely because of payment
- The closing company solely because it collects the fee
Show answer and explanation
Answer: B. The lender
Client status comes from the engagement, not merely paying or collecting the fee. The lender is identified as client in the stated assignment.
5. An Illinois broker prepares a covered, separately compensated CMA for a prospective seller. Which label correctly respects the product boundary?
- USPAP certification
- Tax assessment
- Certified appraisal
- Comparative market analysis, not an appraisal
Show answer and explanation
Answer: D. Comparative market analysis, not an appraisal
Illinois law maintains a clear boundary between broker pricing products and appraisals.
6. Which description correctly states the highest-and-best-use analysis?
- Legal permissibility, physical possibility, financial feasibility and maximum productivity must be addressed
- Treat the present use as conclusive regardless of other evidence
- Choose the use with the highest gross revenue before considering costs
- Ignore legal constraints whenever the buyer prefers a different use
Show answer and explanation
Answer: A. Legal permissibility, physical possibility, financial feasibility and maximum productivity must be addressed
The four tests address the qualifying use and its productivity. A single mnemonic order or a high gross-rent figure does not replace the analysis.
7. What does an extraordinary assumption address?
- An arithmetic correction
- An uncertain assignment-specific fact treated as true
- A known fact deliberately treated as false
- A guaranteed future event
Show answer and explanation
Answer: B. An uncertain assignment-specific fact treated as true
If the assumption proves false, assignment results could be affected.
8. Which action best respects appraisal independence?
- Tell the appraiser which sales must control
- Submit verified factual corrections without demanding a target value
- Withhold future assignments unless value rises
- Pay only if the contract price is reached
Show answer and explanation
Answer: B. Submit verified factual corrections without demanding a target value
Relevant information can be shared through proper procedures without coercing the conclusion.
9. Under current Regulation B, which application generally triggers appraisal-copy rights under section 1002.14?
- Every second-lien loan solely because it is on a principal residence
- Every cash purchase with no credit application
- Credit secured by a first lien on a dwelling
- Only a loan secured by commercial property with no dwelling
Show answer and explanation
Answer: C. Credit secured by a first lien on a dwelling
The rule covers appraisals and other written valuations developed for that covered credit application.
10. Which statement correctly describes the identified October 2026 USPAP status?
- A 2026 course title automatically replaces the incorporated Illinois edition
- 2024 USPAP remains current; separate 2026 guidance is not a new standards edition
- An advisory opinion automatically creates a new USPAP edition
- Using technology removes the appraiser's standards obligations
Show answer and explanation
Answer: B. 2024 USPAP remains current; separate 2026 guidance is not a new standards edition
The Foundation identifies 2024 USPAP as current, and the identified Illinois rule incorporates that edition. AO 41 was adopted as separate technology guidance in April 2026.
11. Which statement correctly distinguishes the Illinois appraisal-report definition from a particular assignment's reporting requirements?
- Every appraisal report must be oral
- The statutory definition includes written or oral reports, while a particular assignment can require writing
- A report cannot communicate an appraisal review
- The state definition cancels all lender writing requirements
Show answer and explanation
Answer: B. The statutory definition includes written or oral reports, while a particular assignment can require writing
Illinois defines the report to include written or oral communication to the client after completion. Other applicable requirements can still demand a written report.
12. A covered creditor has accepted an AVM report as complete. There is no timing waiver. It withholds that report solely to wait several weeks for a separate appraisal. What is the best conclusion?
- Every valuation can wait until the closing package
- Only the appraisal fee determines when a copy is due
- It must address the prompt-delivery requirement for the completed AVM
- The AVM is never a covered written valuation
Show answer and explanation
Answer: C. It must address the prompt-delivery requirement for the completed AVM
Regulation B can cover the written AVM report. The unfinished second valuation is not an automatic reason to postpone prompt delivery of the completed report.
Common questions
What is a real estate appraisal?
An appraisal develops an opinion of value for a defined assignment. Identify the actual property interest, intended use, relevant users, value definition and effective date. For its own covered banking framework, OCC regulation 34.42 defines an appraisal as a written, independent and impartial statement supported by relevant market information. That federal definition is not a universal written-only definition for every Illinois assignment.
What does a real estate appraiser actually value?
The appraiser values an identified real property interest, not merely a building. The interest might be fee simple, leased fee, leasehold, a condominium unit, an easement, a life estate, a partial interest, or another defined bundle of rights. Changing the interest can change the analysis and result.
What are the three approaches to value?
The main approaches are sales comparison, cost and income. Consider their applicability, the available support and the actual assignment requirements. Reconciliation evaluates the strength of the resulting indications; it does not automatically average three numbers. A specific lender or program can impose additional requirements.
Is the appraisal date the same as the inspection date?
Not necessarily. The effective date is the date to which the value opinion applies. The inspection date records the observation, while the report identifies its own report date. Do not substitute the delivery or closing date. A retrospective opinion can apply to a date before the later inspection and report.
Is an appraisal the same as a home inspection?
No. An appraisal addresses value for the assignment. A home inspection generally examines systems and physical condition for defects or maintenance concerns. An appraiser observes characteristics relevant to value but does not guarantee structural soundness, code compliance, environmental safety, title, or the performance of concealed systems.
Is a CMA or BPO an appraisal in Illinois?
A covered CMA or BPO is a broker product, not an appraisal. Illinois section 10-45 addresses permitted uses and written contents, including the not-an-appraisal statement. A broker cannot change professional capacity just by adding more comparable sales. The definitions also distinguish specified ordinary-course brokerage activity with no compensation beyond sale-or-rental-based compensation. The linked comparison explains those details.
Who can perform an appraisal in Illinois?
Illinois appraiser law governs practice and protected titles, with specified exceptions. IDFPR identifies trainee, certified residential and certified general appraiser credentials and a temporary-practice permit process. It separately registers appraisal management companies; an AMC is not another individual appraiser credential. Actual scope, supervision, competence, assignment and client requirements still matter.
Does paying for an appraisal make the borrower the client?
No. Payment does not by itself determine the client. In a mortgage assignment, the lender or another ordering party is commonly the client. The borrower may be an intended user or receive a copy under applicable law without becoming the appraiser's client or gaining authority to direct the result.
Can a buyer receive a copy of a lender appraisal?
For a covered application for credit secured by a first lien on a dwelling, Regulation B requires copies of appraisals and other written valuations promptly upon completion or three business days before consummation or account opening, whichever is earlier. Valid timing waivers have conditions and do not cancel the copy right. The rule also addresses denied, withdrawn and incomplete applications.
The creditor also has a separate notice requirement: generally within three business days after receiving the covered application, it must send the written notice of the right to an appraisal copy. That notice deadline is different from the deadline for providing the valuation itself.
Which USPAP edition is current in October 2026?
The Appraisal Foundation identifies 2024 USPAP as current and says its most recent standards update took effect January 1, 2024. The identified Illinois rules incorporate that edition with no later amendments or editions. In April 2026, the Appraisal Standards Board adopted separate Advisory Opinion 41 on technology. A 2026 course or guidance publication does not itself create a new 2026 edition of USPAP.
Are these official PSI questions or appraisal advice?
No. These are original teaching scenarios and questions, not official PSI material or a validated readiness test. A real assignment requires its engagement terms, applicable standards, complete report and relevant law or program requirements. This page does not approve a property value, loan, report format or contract cancellation.
Can an appraisal report be oral under Illinois law?
The state statutory definition includes written or oral communication of an appraisal or appraisal review to a client after completion of the assignment. That does not authorize oral reporting when another applicable law, program or engagement requires a written report. Covered Illinois CMAs and BPOs separately have a writing requirement.
What are the four highest-and-best-use tests?
The use must be legally permissible, physically possible, financially feasible and maximally productive. Legal and physical constraints must be addressed before treating an alternative as a qualifying productive use. Do not turn the order of two words in a mnemonic into the entire analysis. The current use is not automatically the highest and best use, and the largest gross revenue is not the deciding test.
Must every appraisal develop all three approaches?
Do not assume that every property requires three equally developed approaches. Applicability, credible evidence and the actual standards and assignment requirements govern the work. For example, a lender program can require an approach for a specified property type. If the problem supplies weak cost evidence and strong income and sales evidence, reconciliation should address that difference instead of mechanically averaging.
How is an extraordinary assumption different from a hypothetical condition?
An extraordinary assumption concerns uncertain assignment-specific information as of the effective date. A hypothetical condition treats a known contrary-to-fact condition as true for the analysis. Each must be appropriate for the assignment and disclosed clearly. Saying an interior was not inspected describes scope; by itself it does not identify what condition was assumed.
Can a broker challenge an appraisal error without pressuring value?
For a covered valuation, the federal independence rule permits requests to consider relevant property or comparable information, explain a conclusion or correct errors. It prohibits coercing a target result. Submit documented facts through the appropriate process; promising work or payment only if a target is reached is different from a factual correction.
Do the copy rules cover only a traditional appraisal?
No. Regulation B includes other written valuations developed in connection with the covered application, including relevant AVM and broker-price reports. Integrated attachments and exhibits are included. Not every inspection report, internal restatement or public tax-assessment list is a covered valuation. Copy rights do not make a particular Illinois BPO use lawful if it is otherwise prohibited.
Can an applicant waive the right to receive the valuation?
The cited rule permits a qualified timing waiver, not cancellation of the copy right. Ordinarily the waiver must be obtained at least three business days before consummation or account opening, with a narrow exception for specified clerical revisions of an earlier timely copy. A valid waived transaction that will not close has the separate 30-day delivery rule. The waiver cannot be inferred merely from silence.
Is the valuation copy free even when an appraisal fee is charged?
The creditor cannot charge for providing the required copy. A reasonable fee to reimburse the cost of the appraisal or valuation may be permitted, subject to other law. Those are different charges. The copy right does not automatically make the borrower the appraiser's client.
Does an appraisal below the contract price automatically cancel the purchase?
No. The value opinion, the lender's underwriting decision and the purchase contract are separate matters. Cancellation rights and possible costs depend on the actual contract and applicable law. An appraisal gap is not an automatic permission to cancel without cost, a requirement that the seller reduce the price or an automatic loan approval.
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Your next practice step
Put valuation into practice
Choose the approach or value principle that fits the facts, then check your reasoning.
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Official sources and scope
Checked October 25, 2026 against the identified Illinois law, current federal definitions and consumer rules, the Appraisal Foundation's current publisher page and the named professional guidance. Older DRE material supports basic process concepts. Federal rules have different scopes: OCC's written definition, the principal-dwelling independence rule and the first-lien dwelling copy rule should not be combined into one universal test. Original examples are not property valuations or legal advice.
- PSI June 24, 2026: national III.A appraisal process and III.B value approaches
- 225 ILCS 458/1-10: appraisal, reports and AVM definitions
- 225 ILCS 458/5-5: appraisal licensing and selected exceptions
- 68 Ill. Adm. Code 1455.240: incorporated USPAP edition and qualified exception
- 225 ILCS 454/1-10: CMA, BPO and ordinary-course compensation exclusion
- 225 ILCS 454/10-45: permitted uses and complete written-report contents
- 12 CFR 34.42: appraisal and market-value definitions in the OCC framework
- Regulation B 12 CFR 1002.14: valuation-copy coverage, timing and fees
- 12 CFR 1026.42(c): factual corrections and prohibited value pressure
- California DRE chapter 15: basic appraisal process, approaches and reconciliation
- Appraisal Institute Guide Note 15: uncertain information and contrary-to-fact conditions
- The Appraisal Foundation: current 2024 USPAP and April 2026 technology guidance
- IDFPR: individual appraisal credentials, temporary permits and separate AMC registration
- CFPB: appraisal and home inspection serve different purposes
- CFPB: a low appraisal and contract cancellation are separate questions
- 42 U.S.C. 3605: discrimination in residential real estate-related transactions
This is exam preparation, not advice for a specific transaction. State law and the applicable facts control. Our editorial and corrections process explains how to report an issue.