An appraisal report must comply with which set of professional standards?
Why Uniform Standards of Professional Appraisal Practice (USPAP) Is Correct
Answer B: Uniform Standards of Professional Appraisal Practice (USPAP)
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
- The USPAP (Uniform Standards of Professional Appraisal Practice) is:Property Valuation
- An appraiser's certification in the appraisal report states that the opinion of value is:Property Valuation
- An appraisal report is considered 'as of' a specific date because:Property Valuation
- The principle of 'contribution' in appraisal states that:Property Valuation
Key Terms to Know
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.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
State-Specific Concepts
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