Property Valuation
In Minnesota, an 'as-is' appraisal reflects the property's value:
AAfter all planned renovations are complete
BIn its present condition, without any proposed improvements✓ Correct
CBased on the highest and best use, regardless of current condition
DAs if all required repairs were completed
Explanation
An 'as-is' appraisal values the property in its current physical condition, without credit for any proposed renovations, repairs, or improvements. This is the standard for most purchase appraisals.
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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.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market 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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