Market value in a real estate appraisal assumes all of the following EXCEPT:
Why The sale includes seller financing at below-market rates Is Correct
Answer D: The sale includes seller financing at below-market rates
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 property generates $18,000 annual net operating income and the market cap rate is 6%. What is the indicated value?Property Valuation
- A comparable sale closed 6 months ago at $300,000 and the market has appreciated 1% per month since then. What is the time-adjusted price?Property Valuation
- A final value opinion in a real estate appraisal is derived by:Property Valuation
- A property in Raleigh, NC has a net operating income of $48,000 and the market capitalization rate is 8%. Its estimated value using the income approach is:Property Valuation
Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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 →