Property Valuation
When a Virginia appraiser states a 'range of value' rather than a single point value, they are acknowledging:
AUncertainty in their analysis
BThat market value is not always a precise point but a range within which the most probable price falls✓ Correct
CA USPAP violation
DThe property should not be sold
Explanation
Market value is a theoretical construct. For complex properties or unique markets, an appraiser may express value as a range. USPAP allows this when a single value would be misleading.
Related Virginia Property Valuation Questions
- An appraiser in Virginia determines a property's value using the income approach. The property generates $30,000 net operating income and the cap rate is 6%. What is the value?
- Which appraisal principle states that the value of a property is affected by the values of surrounding properties?
- An appraiser uses the 'income capitalization approach' and determines the capitalization rate by the 'band of investment method.' This method is based on:
- A Virginia appraiser performing an appraisal for a divorce proceeding must:
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- A Virginia appraiser discovers a 'seller concession' was included in a comparable sale that inflated the sale price. The appraiser should:
- A Virginia appraiser in the Richmond market finds only two comparable sales in the past 12 months. They may also use:
- In the income approach to appraisal, 'potential gross income' (PGI) is defined as:
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