Property Valuation
In NC, a 'drive-by appraisal' (exterior-only inspection) differs from a full appraisal in that it:
ARequires no inspection at all
BLimits the appraiser's interior observations, reducing the certainty of the value conclusion✓ Correct
CIs used only for commercial properties
DCannot be used for mortgage lending purposes
Explanation
A drive-by (exterior-only) appraisal involves no interior inspection, which limits the appraiser's ability to assess interior condition and features, resulting in a less certain value estimate.
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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.
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.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
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