Property Valuation
A Rhode Island appraiser identifies a property's 'effective date' of appraisal. This refers to:
AThe date the appraisal report is signed by the appraiser
BThe specific date as of which the value opinion is expressed✓ Correct
CThe date the property goes on the market
DThe date the buyer and seller agree on a price
Explanation
The effective date is the specific date as of which the appraiser's value opinion applies. Market conditions change over time, so an appraisal value is only valid as of its effective date.
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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.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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