Which of the following statements is true regarding appraisal reports?

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The statement regarding appraisal reports that is true is that they must be completed by a licensed appraiser. This requirement ensures that the appraisal is performed by someone who has the necessary education, training, and credentials to assess the value of the property accurately. Licensed appraisers adhere to specific standards and ethical guidelines, which helps maintain the integrity of the appraisal process and provides a reliable basis for value for both buyers and lenders.

Other options that are incorrect highlight different aspects of valuation but do not reflect the requirements for formal appraisal reports. Valuations based on online estimates may not meet the same rigorous standards and are typically considered less reliable. Appraisals are often essential in real estate transactions, particularly in securing financing, and are not optional in many cases where lender requirements or legal stipulations demand them. Additionally, while some real estate professionals may have knowledge of property values, they are not authorized to draft formal appraisal reports unless they are licensed appraisers.