Property Valuation
An appraiser's determination of value is an estimate as of:
AThe date the property was last sold
BThe specific effective date of the appraisal✓ Correct
CThe date of the listing agreement
DToday's date always
Explanation
Appraisals reflect value as of a specific effective date — the date to which the analysis applies. Market conditions can change, so an old appraisal may not reflect current value.
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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.
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