Property Valuation
In Minnesota, the 'subject property' in an appraisal refers to:
AThe best comparable sale selected by the appraiser
BThe property being appraised✓ Correct
CThe lender's property
DThe comparable property used for reconciliation
Explanation
The subject property is the specific property being appraised in a Minnesota appraisal engagement. The appraiser inspects the subject, identifies its characteristics, and then selects comparable sales to establish market value for the subject.
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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.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Math Concepts
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