Property ValuationIntermediateNorth Carolina Exam

A NC appraisal that states the value 'as of' a specific date is reporting the property's value:

AFor the current calendar year

BOn that specific effective date, which may be past, present, or futureCorrect

COn the date the appraisal report is delivered, across most transactions

DFor the period of the mortgage loan

Why On that specific effective date, which may be past, present, or future Is Correct

Answer B: On that specific effective date, which may be past, present, or future

An appraisal's effective date is the date to which the value conclusion applies — it may be the same as the report date, a past date (retrospective), or a future date (prospective).

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

Key Property Valuation Terms in This Question

Appraisal

A professional estimate of a property's market value prepared by a licensed or certified appraiser.

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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.

Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.

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.

Discount Points

Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.

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