Property Valuation
An Arizona appraisal for a 'retrospective' date requires the appraiser to:
AUse current market data regardless of the effective date
BOnly use market data and conditions that were available and known as of the historical effective date✓ Correct
CAdjust current market value backward in time
DEstimate what the property would be worth today if historical conditions prevailed
Explanation
A retrospective appraisal must use market data that was known or knowable as of the historical effective date. The appraiser must consider the market conditions that existed at that time, not conditions known only in hindsight.
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Key Terms to Know
Appraisal
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.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
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