In a seller-financed sale, the appraiser most often obtains the financing details by which method?

• A. Review of public records
• B. Contacting the lender directly
• C. Verification with a party to the transaction
• D. Appraiser's personal estimate

Answer: (C)

In a seller-financed sale, the loan terms are negotiated directly between the buyer and seller, so the appraiser must verify the financing details with a party to the transaction. This means obtaining and reviewing the actual documents or statements that establish the loan terms—such as the promissory note, deed of trust, purchase agreement, and the closing statement—to confirm the interest rate, loan amount, payment schedule, term, and any special terms or concessions. Public records typically won’t reveal private terms of a seller-financed loan, and there is often no traditional lender to contact. Relying on the appraiser’s own estimate would lack the necessary documentation to support adjustments, making verification with a party to the transaction the most reliable method.