Texas Real Estate State Practice Exam

When is a licensed appraiser required for property valuation?

1. For any property worth $250,000 or more

2. For combining several parcels of land

3. For estimating value using multiple approaches

4. For pledging real property as security

The correct answer is: For any property worth $250,000 or more

A licensed appraiser is required for property valuation specifically in scenarios where the property is valued at $250,000 or more. This requirement stems from regulations that dictate the need for a formal appraisal to ensure that the property’s value is accurately assessed, particularly in transactions involving significant sums. In the context of real estate, a higher-value property often necessitates a more rigorous appraisal process due to the potential financial implications involved, such as lending considerations and investment decisions. The threshold of $250,000 has been established as a baseline measure that typically triggers the requirement for a licensed appraiser to ensure compliance with both legal and industry standards. While the other options involve various aspects of real estate practice, they do not necessarily mandate the engagement of a licensed appraiser in the same way that the valuation of higher-value properties does. For instance, combining parcels of land may involve other types of assessments, and estimating value through multiple approaches can be part of an appraisal process but does not alone require a licensed appraiser without the context of property value. Pledging real property as security may require valuation, but again, it does not specifically necessitate an appraisal at the specified threshold.