Maryland Home Improvement PSI Practice Exam

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Prepare for the Maryland Home Improvement Test. Study using flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel on your exam!

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An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than ___________?

$100,000.
$250,000.
$500,000.
$1,000,000.

The correct answer is: $250,000.

In the context of appraising residential property that is federally related, the threshold for requiring a license or certification is set at $250,000. This is established by federal regulations to ensure that appraisals performed for federally related transactions adhere to standardized practices and maintain a level of quality and integrity. Properties valued above this amount typically involve significant financial stakes, which necessitates the expertise of a qualified appraiser. The licensing and certification requirements are in place to protect the interests of both the financial institutions involved and the consumers, ensuring that proper evaluations are conducted to support lending decisions. While other amounts may be relevant in different contexts, the requirement specifically focuses on the $250,000 benchmark for federally related transactions, making it critical for maintaining standards in the appraisal process for higher-value residential properties.