Property Valuation
What is a 'subject property' in a Delaware appraisal?
AA property the appraiser personally owns
BThe specific property being appraised✓ Correct
CA comparable property used in the sales comparison approach
DA property that is the subject of litigation
Explanation
The subject property is the specific property that is being appraised. Comparable sales are analyzed in relation to the subject property to arrive at an opinion of the subject property's value.
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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.
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.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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