Property Valuation (alternative)
In Maryland appraisal practice, the 'date of value' is significant because:
AIt determines which comparable sales may be considered
BProperty values change over time, so the opinion of value is specific to that date✓ Correct
CIt triggers a SDAT reassessment
DIt sets the closing date for the transaction
Explanation
Every appraisal opinion of value is specific to the effective date of the appraisal. Market conditions change over time, so the value estimate only reflects conditions as of the stated date.
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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.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
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