An appraisal report is considered 'as of' a specific date because:
Why Property values change over time, and the appraised value reflects market conditions on a specific effective date Is Correct
Answer B: Property values change over time, and the appraised value reflects market conditions on a specific effective date
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
Key Property Valuation Terms in This Question
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Related Alabama Questions
- An appraiser's certification in the appraisal report states that the opinion of value is:Property Valuation
- When an appraiser states a value 'as of' a certain date, this is called the:Property Valuation
- An appraisal that values property for insurance purposes uses which value concept?Property Valuation
- An appraisal performed 'retrospectively' (as of a past effective date) is used for:Property Valuation
Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
State-Specific Concepts
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