Property ValuationIntermediateNorth Carolina Exam

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

Why Effective date (date of value) Is Correct

Answer B: Effective date (date of value)

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.

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

Appraisal

A professional estimate of a property's market value prepared by a licensed or certified appraiser.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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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.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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 Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

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