Property Valuation
In Alaska, a licensed appraiser must develop and report their opinion of value in a manner that is:
AAcceptable to the lender commissioning the appraisal
BCredible — meaning it is supported by market evidence and professional analysis consistent with USPAP✓ Correct
CWithin 5% of the purchase price
DBased primarily on the assessed value for property tax purposes
Explanation
Under USPAP, appraisers must produce credible appraisals — value opinions that are adequately supported by market evidence and professional analysis. A credible appraisal is one that a competent peer would consider well-supported. Hitting a particular price target for the client is not a legitimate basis for an opinion of value.
Related Alaska Property Valuation Questions
- In Alaska, the value added by a swimming pool to a residential property may be less than its construction cost because of the principle of:
- In Alaska, assessed value for property tax purposes is set by boroughs. If a property has a market value of $400,000 and the assessment ratio is 80%, the assessed value is:
- A commercial property in Juneau generates $120,000 in NOI annually. The prevailing cap rate for similar properties is 8%. What is the estimated value?
- An Alaska residential property was appraised at $425,000. The owner disputes the value, claiming the appraiser failed to consider permafrost-related foundation issues that require $30,000 in remediation. This claim relates to which type of depreciation?
- The principle of substitution underpins which appraisal approach?
- A comparable sale used in the sales comparison approach requires a positive adjustment when:
- In Alaska, the cost approach to value is MOST useful for appraising:
- In Alaska, which legal description method is most commonly used for rural and remote land?
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