Question
nnnnAn appraiser in analyzing the data for his final estimate of value on a property would give least consideration to:
nnnnSelections
nnnn• A. The assessed value of the property
nnnn• B. The value of the land
nnnn• C. Comparisons of other properties
nnnn• D. Its highest and best use
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Answer: A
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5 Keys Summary
nnnn• Assessed value is derived by a valuation officer specifically for tax purposes.
nnnn• The assessed value of a property is explicitly not equal to its market price.
nnnn• An appraiser’s goal is to determine the true final estimate of value using established valuation methods.
nnnn• Because assessed value is valuation for taxation, it cannot be used by the appraiser to determine the market value of the house.
nnnn• In contrast, analyzing comparisons of other properties (the sales-comparison approach) is one of the three methods appraisers use to select and apply value estimates.
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