CRAM ARCADE Open App

An appraiser knowingly selects only comparable sales that support a predetermined high value for a property, ignoring more recent and more comparable sales that indicate a lower value. Which of the following BEST describes this action?

Ethics · 18% of the SAFE exammedium

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Correct answer: Appraisal fraud through intentional misrepresentation of value

When an appraiser intentionally cherry-picks comparable sales to support a predetermined value rather than performing an objective analysis, this constitutes appraisal fraud. USPAP (Uniform Standards of Professional Appraisal Practice) requires appraisers to develop unbiased opinions of value. Deliberately selecting only favorable comparables to inflate value misrepresents the property's true market value and can expose lenders to significant losses. An appraiser has legitimate discretion in comparable selection, but only when exercised with objectivity, not to reach a predetermined conclusion.

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