In federally related transactions, federal regulations specifically require that appraisals for properties valued above a certain threshold must be performed by a licensed or certified appraiser. This standard is in place to ensure that property valuations are conducted by individuals who have met stringent education and training requirements and are knowledgeable about local market conditions.
Licensed or certified appraisers are validated professionals whose expertise allows them to assess property values reliably. They are trained to apply various appraisal methods and consider numerous factors impacting property value, including the condition of the property, comparable sales, and current market trends. This regulatory requirement also helps maintain the integrity and accuracy of appraisals involved in federally insured loans, thereby protecting both lenders and consumers from inaccurate valuation assessments.
The other choices presented do not align with the requirements set forth by federal regulations. For instance, while lenders and independent contractors can play significant roles in real estate transactions, they are not authorized to perform appraisals unless they hold the necessary appraiser license or certification. Similarly, while real estate agents have valuable market knowledge, they do not fulfill the specific appraisal standards required for federally related transactions unless they are also licensed appraisers.