Market Value

A broker preparing a BPO for a lender relies on outdated comparable sales and produces a valuation significantly above market value, which the lender uses to make a lending decision. What is the most accurate assessment?

1. The broker faces no responsibility because BPOs are never taken seriously
2. Only appraisers can ever be held responsible for valuation errors
3. The lender bears full responsibility regardless of the broker's work
4. The broker could face liability or licensing consequences for a negligently prepared BPO

An agent secretly arranges to purchase a portion of a client's property at below-market value, without disclosing this personal interest or obtaining the client's consent. This violates the fiduciary duty of:

1. Obedience, because the client never gave the agent any instruction at all regarding a possible personal purchase of the listed property in this scenario
2. Reasonable care, because the agent lacked the appraisal training needed to value the property fairly
3. Loyalty, since undisclosed self-dealing creates a direct conflict of interest between the agent's personal gain and the client's best interest
4. Confidentiality, because the sale price was not publicized

A four-unit building has each unit renting for $1,450 per month. Comparable properties in the area sell at a GRM of 130. What is the estimated market value of the building?

1. $754,000
2. $62,833.33
3. $188,500
4. $696,000