Which professional is primarily responsible for estimating the market value of a property in a lending transaction?

• A. Real estate agent
• B. Appraiser
• C. Mortgage loan officer
• D. Title examiner

Answer: (B)

In lending, the person who determines a property’s market value is an appraiser. This professional is licensed or certified and uses standardized methods—primarily the sales comparison approach, and sometimes the cost or income approach—to produce an appraisal report. The lender relies on this independent evaluation to gauge risk and decide how much to loan, often using it to calculate the loan-to-value ratio. Appraisers follow professional standards to ensure objectivity and consistency, which helps protect both the borrower and the lender.

A real estate agent can provide price opinions or market data, but those are not formal appraisals and aren’t used as the lender’s official valuation. A mortgage loan officer handles the loan application, processing, and underwriting, but does not estimate market value. A title examiner reviews the property’s title and encumbrances, not its value.