Property Valuation
An appraiser in Louisville is asked to determine the 'as-improved' value after a proposed renovation. This is called a:
ARetrospective appraisal
BProspective appraisal✓ Correct
CMass appraisal
DAutomated valuation
Explanation
A prospective appraisal estimates value as of a future date or upon completion of proposed improvements, while a retrospective appraisal determines value at a past date.
People Also Study
Related Kentucky Questions
- A Kentucky appraiser is performing a retrospective appraisal to determine value as of a past date for an estate. The appraiser must use data that was available:Property Valuation
- An appraiser in Louisville uses three comparable sales. After adjustments, the values are $285,000, $290,000, and $287,500. The appraiser assigns the most weight to the $290,000 comparable because it is most similar. The indicated value is:Property Valuation
- An appraiser using the income approach determines that a Kentucky property's net operating income is $30,000. At a 7.5% cap rate, the estimated value is:Property Valuation
- A Kentucky appraiser is asked to value a Lexington tobacco farm. The most appropriate valuation approach would be:Property Valuation
- A Kentucky property has a market rent of $1,400/month but current rent is $1,100/month. The appraiser determines that the market value based on market rent at a 125 GRM is:Real Estate Math
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
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.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Study This Topic
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →