Property Valuation
In Alaska, when an appraiser refers to the 'subject property,' they mean:
AA comparable sale used in the analysis
BThe specific property being appraised in the current assignment✓ Correct
CA property that has been the subject of litigation
DAny property that the client wishes to discuss
Explanation
The 'subject property' is always the property being appraised in the current assignment. Comparable sales ('comps') are other properties used to analyze and support the value opinion for the subject property.
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Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AppraisalA 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.
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