Property Valuation
What is a 'retrospective appraisal' and when would it be used in Illinois?
AAn appraisal of a historic property using only historical architectural guidelines
BAn appraisal with an effective date in the past, used for estate tax purposes, litigation, or resolving date-specific disputes✓ Correct
CAn appraisal that compares current value to a previous appraisal
DAn appraisal required for all properties over 50 years old
Explanation
A retrospective appraisal establishes value as of a past date. This is required for estate tax purposes (value at date of death), divorce proceedings, condemnation cases, or other litigation where value at a specific historical date must be established.
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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.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
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.
Math Concepts
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