Property Valuation
The appraised value established in a residential appraisal is most accurately described as:
AAn absolute guarantee of what the property will sell for
BAn opinion of value that is the appraiser's professional estimate as of a specific date✓ Correct
CThe minimum price the seller should accept
DThe assessed value for tax purposes
Explanation
An appraisal is a professional opinion of value — not a guarantee of what a property will sell for. Market prices can differ from appraised values based on negotiation, market timing, and other factors.
People Also Study
Related Tennessee Questions
- A Tennessee property has an appraised value of $200,000. The residential assessment ratio is 25%. The tax rate is $3.20 per $100 of assessed value. What are the annual taxes?Real Estate Math
- A Tennessee appraiser who accepts an appraisal assignment contingent on the result exceeding a certain value is:Property Valuation
- In Tennessee, an appraiser who assigns a value higher than market value to please the lender or buyer is:Property Valuation
- In Tennessee, when an appraiser states a property's value 'as of' a specific date, this is called the:Property Valuation
- When using the gross rent multiplier (GRM), if a property rents for $1,500/month and comparable properties sell at a GRM of 120, what is the estimated value?Property Valuation
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
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.
Math Concepts
Study This Topic
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →