Property ValuationIntermediateAlaska Exam

In Alaska, a 'drive-by appraisal' (exterior-only) is distinguished from a full appraisal because it:

AUses only the cost approach to value
BDoes not include an interior inspection of the propertyCorrect
CIs performed by a real estate agent rather than a certified appraiser
DOnly applies to vacant land

Why Does not include an interior inspection of the property Is Correct

Answer B: Does not include an interior inspection of the property

A drive-by or exterior-only appraisal involves viewing the property from the street without an interior inspection. It is less comprehensive than a full appraisal but may be used for refinances of lower-risk properties.

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.

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