Mi amigo parece loco.

Because mi without an accent is the possessive adjective meaning my.

• mi amigo = my friend

With an accent, mí is a pronoun meaning me, used after prepositions:

• para mí = for me
• sin mí = without me

So in this sentence, mi is correct because it is describing amigo.

Spanish often does not match English word-for-word. Here, parece already means seems or appears, so you do not need a separate word for is.

• Mi amigo parece loco. = My friend seems crazy.

If you added es, that would change the structure and sound unnatural here.

Parece is the third-person singular form of parecer, which usually means:

• to seem
• to appear
• sometimes to look like

Since the subject is mi amigo (one person), Spanish uses parece:

• yo parezco = I seem
• tú pareces = you seem
• mi amigo parece = my friend seems

Because loco is describing amigo, not describing the verb.

In this sentence, loco is an adjective that tells you what your friend seems like.

• Mi amigo parece loco. = Your friend seems crazy.

If you used locamente, that would mean crazily, which would describe how something is done, not what your friend seems like.

In Spanish, adjectives often come after the noun.

• amigo loco = crazy friend

But after verbs like ser, estar, and parecer, the adjective also comes after the verb:

• Mi amigo parece loco.

That is the normal pattern: subject + verb + adjective

Yes. In Spanish, adjectives usually agree in gender and number with the noun they describe.

Here:

• amigo is masculine singular
• so the adjective is loco (masculine singular)

Other possibilities:

• Mi amiga parece loca. = feminine singular
• Mis amigos parecen locos. = masculine plural or mixed group
• Mis amigas parecen locas. = feminine plural

You would normally change both the noun and the adjective:

• Mi amiga parece loca.

Changes:

• amigo → amiga
• loco → loca

The verb stays parece because the subject is still third-person singular.

Because Spanish normally does not use an article before a possessive adjective like mi, tu, su, etc.

So you say:

• mi amigo
• tu casa
• su libro

Not usually:

• el mi amigo ❌

That sounds wrong in modern standard Spanish.

Yes, depending on context, parece can be understood as seems or looks.

• If you are talking about appearance or impression, English might use looks.
• If you are talking more generally about the impression someone gives, English might use seems.

So parece is flexible, but seems is often the safest general meaning.

This is an important difference.

• Mi amigo parece loco = My friend seems crazy
  You are talking about the impression he gives.

• Mi amigo está loco = My friend is crazy
  This sounds much more direct and definite.

So parece loco is softer and less certain than está loco.

Not always. It depends a lot on tone and context.

It can mean:

• literally mentally unstable in some contexts
• crazy in a casual, exaggerated way
• wild, irrational, reckless, or unbelievable

For example, among friends, loco can be playful or informal. But in other situations, it can sound harsh or offensive. So context matters a lot.

Yes, if the subject is already understood from context.

• Parece loco. = He seems crazy / She seems crazy / It seems crazy, depending on context

Spanish often drops subject pronouns and even noun subjects when they are clear. But if you want to specify my friend, then Mi amigo parece loco is natural.

A simple Latin American pronunciation guide is:

• parece → pah-REH-seh

The stress is on the second syllable: RE.

And the full sentence is approximately:

• Mi amigo parece loco → mee ah-MEE-goh pah-REH-seh LOH-koh

The c in parece is pronounced like s in Latin America.