Property Valuation
When an appraiser reports a property's value 'as of' a specific date, they are providing:
AA guarantee that the value will remain constant
BA value opinion that reflects market conditions as of the effective date of the appraisal✓ Correct
CA tax assessment value for that specific year
DA replacement cost estimate for insurance purposes
Explanation
An appraisal opinion of value is always tied to a specific effective date, because market conditions change over time. The 'as of' date reflects the date on which the appraiser observed market conditions and for which their value opinion is relevant. A value opinion from one date may not be applicable for a different date.
Related Illinois Property Valuation Questions
- What is 'automated valuation model' (AVM) and what are its limitations in Illinois real estate?
- When an appraiser determines a value 'as if complete' for a property under construction, they are providing what type of appraisal?
- When appraising a single-family home, which approach to value is given the most weight?
- A property generates a net operating income (NOI) of $48,000 per year. If the appropriate capitalization rate is 8%, what is the indicated value?
- In the sales comparison approach, an appraiser makes adjustments to comparable sales to account for differences between the comparable and the subject property. If a comparable has a feature the subject lacks, the appraiser should:
- An appraiser's market value opinion assumes the most probable price a property would bring in a competitive open market under the following conditions EXCEPT:
- In the cost approach, replacement cost differs from reproduction cost because replacement cost is:
- An Illinois property has a net operating income of $48,000 per year and comparable properties are selling at a capitalization rate of 8%. What is the estimated value?
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