In Arizona, an 'as-is' appraisal differs from an 'as-completed' or 'subject-to' appraisal in that:
Why An as-is appraisal reflects the current condition of the property, while an as-completed appraisal projects the value after proposed repairs or renovations are completed Is Correct
Answer B: An as-is appraisal reflects the current condition of the property, while an as-completed appraisal projects the value after proposed repairs or renovations are completed
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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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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