Question
nnnnAn appraiser intends that the estimate of value as disclosed in his or her appraisal report on a property be valid:
nnnnSelections
nnnnA. As of the date of the appraisal only
nnnnB. For a period of three months after the appraisal date
nnnnC. For a period of six months after the appraisal date
nnnnD. For a period of one year after the appraisal date
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Answer: A
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5 Keys Summary
nnnn• An appraisal is an estimate of a property’s value that is accurate only as of a specific date, reflecting market conditions at that moment in time.
nnnn• The value is constantly evolving due to various external and internal forces, adhering to the Principle of Change.
nnnn• The appraisal process begins by defining the problem, which specifically requires identifying the precise date for which the value is being estimated.
nnnn• Because values fluctuate due to economic and social changes, the historical market value is generally not relied upon for a current appraisal, which focuses on the present and future benefits of ownership.
nnnn• The appraisal estimate does not have a legally specified period of validity (e.g., three, six, or twelve months) because its accuracy ceases the moment market conditions change.
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