Property Valuation
A Missouri appraiser's 'scope of work' determination under USPAP refers to:
AThe amount of the appraisal fee
BThe type and extent of research and analyses necessary to produce a credible value opinion✓ Correct
CThe physical scope of the property
DThe appraiser's license classification
Explanation
Under USPAP, scope of work is the type and extent of research, data collection, and analyses the appraiser determines are necessary to produce a credible, reliable value opinion for the intended use.
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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.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
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