Affiliate Broker Tennessee (TN PSI) National Practice Exam

Question: 1 / 400

What does a property appraisal assess?

The condition of the property's structure.

The value of a property based on various market factors.

A property appraisal primarily assesses the value of a property based on various market factors. This involves determining the fair market value, which is influenced by several elements including the property’s location, comparable sales in the area, current market trends, and unique characteristics of the property itself. An appraiser analyzes these elements to provide an objective and professional opinion on what the property is worth.

This process is essential for various purposes, including securing financing, establishing a selling price, or determining property taxes. It reflects current market conditions rather than just the physical characteristics or potential uses of the property, which is why it focuses on value rather than other aspects like structural condition or historical data.

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The historical sales data of the property.

The potential rental income of the property.

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