Question

An appraiser intends that the estimate of value as disclosed in his or her appraisal report on a property be valid:

Selections

A. As of the date of the appraisal only

B. For a period of three months after the appraisal date

C. For a period of six months after the appraisal date

D. For a period of one year after the appraisal date 

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Answer: A

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5 Keys Summary

• 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.

• The value is constantly evolving due to various external and internal forces, adhering to the Principle of Change.

• The appraisal process begins by defining the problem, which specifically requires identifying the precise date for which the value is being estimated.

• 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.

• 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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