An appraisal of a home in Charlotte, NC comes in $15,000 below the contract price. The most likely outcome is:
Why The buyer and seller must renegotiate or the buyer may need to cover the gap or cancel Is Correct
Answer C: The buyer and seller must renegotiate or the buyer may need to cover the gap or cancel
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
People Also Study
Related North Carolina Questions
- A buyer in NC offers to purchase a property subject to a financing contingency of $260,000 at 6% for 30 years. If the appraised value comes in at $270,000 and the purchase price is $280,000, how much must the buyer pay above the appraised loan base?Real Estate Math
- A lender requires a maximum 80% LTV on a conventional loan. The appraised value is $350,000 and the purchase price is $340,000. What is the maximum loan amount?Real Estate Math
- In NC, when a seller accepts an offer but the buyer's lender cannot fund the loan on the agreed closing date, and time is of the essence, the most likely outcome is:Contracts
- If a property is appraised at $325,000 and the lender requires 20% down, what is the maximum loan amount?Real Estate Math
- A NC home is appraised at $350,000. The buyer obtains an 80% LTV conventional loan. The down payment and loan amount are:Real Estate Math
- A final value opinion in a real estate appraisal is derived by:Property Valuation
- Market value in a real estate appraisal assumes all of the following EXCEPT:Property Valuation
- An appraiser estimates a home's replacement cost new at $350,000, total depreciation of 25%, and land value of $80,000. What is the cost approach value?Property Valuation
Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
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.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Study This Topic
Practice More North Carolina Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →