Property Valuation
A North Dakota property appraiser's opinion of value differs significantly from the sale price. The appraiser should:
AAdjust the opinion of value to match the sale price
BReport the independently supported opinion of value, regardless of the contract price✓ Correct
CReport a value midway between the sale price and their opinion
DRefuse to complete the appraisal
Explanation
Appraisers must render independent, objective opinions of value based on evidence and analysis. They must not adjust their conclusions to meet a client's desired value or a contract price. This is required by USPAP.
Related North Dakota Property Valuation Questions
- In the cost approach to value, reproduction cost differs from replacement cost because:
- The 'principle of supply and demand' in North Dakota real estate markets means:
- A North Dakota appraiser must disclose a prior service relationship with a party to the transaction in their appraisal report because:
- In North Dakota, a property's 'assessed value' for tax purposes may differ from 'market value' because:
- Which appraisal approach uses the formula: Value = Land Value + (Replacement Cost New - Depreciation)?
- A North Dakota appraiser values a property using the cost approach. The site value is $60,000, improvement reproduction cost is $250,000, and total depreciation is $75,000. The indicated value is:
- An appraisal is different from a CMA (Comparative Market Analysis) because:
- A North Dakota appraiser observes that a neighborhood has 'declining economic vitality' characterized by high vacancy rates and falling property values. This describes a neighborhood in:
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