The principle of change implies that a value opinion is:
Correct Answer
A) Valid as of a specific date rather than indefinitely
Why this is correct: The principle of change states that market forces and property conditions are dynamic, not static. Therefore, an appraisal's value opinion is a snapshot of value based on the market data and conditions as of a specific effective date. It is not a permanent fact. Why the other choices are wrong: 'Permanent once the report has been delivered to the client' is wrong because value changes over time, regardless of report delivery. 'Applicable to any similar property' is wrong because an appraisal is specific to the subject property and its unique characteristics. 'Independent of market conditions' is wrong because market conditions are the primary determinant of value. Exam tip: Remember the effective date is the anchor for all data in an appraisal; value is always as of that date.
Why This Is the Correct Answer
Why this is correct: The principle of change states that market forces and property conditions are dynamic, not static. Therefore, an appraisal's value opinion is a snapshot of value based on the market data and conditions as of a specific effective date. It is not a permanent fact. Why the other choices are wrong: 'Permanent once the report has been delivered to the client' is wrong because value changes over time, regardless of report delivery. 'Applicable to any similar property' is wrong because an appraisal is specific to the subject property and its unique characteristics. 'Independent of market conditions' is wrong because market conditions are the primary determinant of value. Exam tip: Remember the effective date is the anchor for all data in an appraisal; value is always as of that date.
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The principle of consistent use prohibits:
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