Property Valuation
An appraisal performed 'retrospectively' (as of a past effective date) is used for:
ASetting future listing prices
BEstate settlement, litigation, or tax purposes requiring valuation as of a past date✓ Correct
CPredicting future property values
DEstablishing current market value for a mortgage
Explanation
A retrospective appraisal values a property as of a past date, commonly used for estate valuations, divorce proceedings, insurance claims, or tax-related litigation.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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