An NC appraiser's opinion of value must be 'credible' according to USPAP. Credible means the value conclusion is:
Why Supported by sufficient market data, analysis, and reasoning Is Correct
Answer B: Supported by sufficient market data, analysis, and reasoning
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
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- A final value opinion in a real estate appraisal is derived by:Property Valuation
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- NC appraisers must comply with the Uniform Standards of Professional Appraisal Practice (USPAP). USPAP requires appraisers to provide:Property Valuation
- When appraising a property in NC, the appraiser's opinion of value must reflect the value as of a specific:Property Valuation
Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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.
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