When an appraiser states a value 'as of' a certain date, this is called the:
Why Effective date of value Is Correct
Answer B: Effective date of value
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
- An appraisal report is considered 'as of' a specific date because:Property Valuation
- An appraiser applies a 7% cap rate to a NOI of $42,000. What is the estimated property value?Property Valuation
- A property is listed with an asking price of $375,000. The appraiser's market value conclusion is $350,000. The lender will base the loan on: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.
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.
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