Property Valuation
In NJ, a 'restricted appraisal report' under USPAP contains:
AMore detail than a standard appraisal report
BLess information than an Appraisal Report, with the client understanding that the reasoning and analysis are retained in the appraiser's work file✓ Correct
CNo value conclusion
DA detailed analysis of all three approaches
Explanation
A Restricted Appraisal Report (formerly Restricted Use Appraisal Report) is a condensed format that presents summary conclusions with limited explanation, by agreement with the client who understands the fuller analysis is in the appraiser's work file. It may only be used by the client.
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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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
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