Property Valuation
A 'drive-by' or 'exterior inspection' appraisal (Form 2055) in Tennessee is typically used for:
AAll residential mortgage transactions
BLower-risk refinance transactions where the lender does not require a full interior inspection✓ Correct
CInvestment properties with multiple units
DProperties in rural areas where access is difficult
Explanation
Limited appraisal reports like Form 2055 (exterior-only inspection) are used by lenders for lower-risk transactions — primarily refinances with existing equity — where a full interior inspection is not required. They are less comprehensive and appropriate only in limited circumstances.
Related Tennessee Property Valuation Questions
- The appraised value established in a residential appraisal is most accurately described as:
- In Tennessee, the appraisal method of 'paired sales analysis' is used to:
- Economic life of a building is defined as:
- In Tennessee, when an appraiser states a property's value 'as of' a specific date, this is called the:
- The highest and best use of a property is defined as the use that is:
- In Tennessee, which type of value is most relevant for estate and gift tax purposes?
- In Tennessee, USPAP (Uniform Standards of Professional Appraisal Practice) requires appraisers to:
- In the cost approach to value, 'depreciation' is best defined as:
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