Property Valuation
A Louisiana appraiser performing a 'drive-by' or 'exterior-only' appraisal is completing a:
AComplete interior inspection
BRestricted use report that only observes the exterior, which may have limitations on accuracy and use✓ Correct
CFull USPAP-compliant report
DMass appraisal for tax purposes
Explanation
An exterior-only (drive-by) appraisal observes only the exterior of the property from the street. It has limited scope and accuracy compared to an interior inspection and is typically used for low-risk refinances or when interior access is not possible.
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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.
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.
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