Property Valuation
A Minot, ND home appraiser uses a sale that occurred 18 months ago. This may be a concern because:
AOnly sales within 30 days are valid
BOlder sales may not reflect current market conditions and require a time adjustment✓ Correct
CThe sale is automatically inadmissible
DOnly bank-owned sales may be used as comparables
Explanation
While older sales can be used as comparables, they may not accurately reflect current market conditions. Appraisers must make appropriate time adjustments to reflect changes in the market since the date of the comparable sale.
Related North Dakota Property Valuation Questions
- The income approach to value uses which formula?
- A North Dakota appraiser noting 'curable physical deterioration' on a property is referring to:
- In North Dakota, which of the following is NOT a standard method of depreciation recognized in the cost approach to appraisal?
- Which type of value does a North Dakota appraiser typically estimate for mortgage lending purposes?
- Which principle of value states that a property's maximum value is limited by the cost of acquiring an equally desirable substitute?
- A North Dakota appraiser is asked to perform a 'drive-by' or exterior-only appraisal. This is known as a:
- In the cost approach to value, reproduction cost differs from replacement cost because:
- Which appraisal principle states that the value of a property is affected by the values of surrounding properties?
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