Property Valuation
An appraisal report is considered 'as of' a specific date because:
AAREC requires a date on all appraisals
BProperty values change over time, and the appraised value reflects market conditions on a specific effective date✓ Correct
CThe lender requires monthly updates to all appraisals
DFederal law requires appraisals to expire after 90 days
Explanation
Appraisals are tied to a specific effective date because market values fluctuate. An appraisal states the estimated value as of a particular date — market conditions before or after that date are not reflected in the opinion of value.
Related Alabama Property Valuation Questions
- What is 'functional obsolescence' in property appraisal?
- When market data indicates that comparable sales prices are increasing, a time adjustment to a sale from 6 months ago would be:
- A property has a chronological age of 20 years and a total economic life of 50 years. Using the age-life method, what is the depreciation rate?
- The principle of increasing and decreasing returns states that adding more improvements to a property:
- Market rent is the rental income a property would command in the open market, while contract rent is:
- A broker's price opinion (BPO) differs from a formal appraisal in that a BPO:
- An Alabama appraiser uses the income approach to value a rental property. The key formula is:
- In the cost approach, economic life refers to:
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