In NC, a 'drive-by appraisal' (exterior-only inspection) differs from a full appraisal in that it:
Why Limits the appraiser's interior observations, reducing the certainty of the value conclusion Is Correct
Answer B: Limits the appraiser's interior observations, reducing the certainty of the value conclusion
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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Related North Carolina Questions
- A NC appraiser performing a 'retrospective appraisal' is estimating the value of a property:Property Valuation
- In NC, a 'drive-by appraisal' using only exterior inspection and public records is most commonly used for:Property Valuation
- A NC appraiser who adds value to a comparable for its superior condition compared to the subject is:Property Valuation
- A final value opinion in a real estate appraisal is derived by: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.
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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