What is the purpose of a 'drive-by appraisal' versus a full appraisal in Delaware?
Why A drive-by appraisal provides a limited exterior-only inspection at lower cost for lower-risk loans; a full appraisal includes interior inspection Is Correct
Answer B: A drive-by appraisal provides a limited exterior-only inspection at lower cost for lower-risk loans; a full appraisal includes interior inspection
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.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
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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