Property Valuation
When appraising a property in NC, the appraiser's opinion of value must reflect the value as of a specific:
AFuture date when the property will be sold
BEffective date (date of value)✓ Correct
CDate the appraisal report is delivered to the client
DDate of the contract to purchase
Explanation
An appraisal reflects the opinion of value as of a specific effective date (date of value), which may differ from when the appraisal report is completed or delivered. Market conditions as of the effective date determine the value.
Related North Carolina Property Valuation Questions
- In the income approach, 'potential gross income' (PGI) assumes:
- 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?
- A property generates $18,000 annual net operating income and the market cap rate is 6%. What is the indicated value?
- Functional obsolescence in a NC property is caused by:
- Plottage value in real estate refers to:
- In the sales comparison approach, a positive adjustment to a comparable sale means:
- A building has an effective age of 15 years and an economic life of 50 years. What is the depreciation rate using the age-life method?
- The principle of conformity in real estate value states that:
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