Final Opinion of Value
The appraiser's concluded estimate of the defined value of the subject property as of the effective date, arrived at after analyzing all relevant data and reconciling the results of the applied valuation approaches.
The final opinion of value is typically expressed as a single dollar amount, though in some assignments it may be presented as a range. It must be supported by the data and analysis presented in the report and must be consistent with the scope of work, intended use, and definition of value applicable to the assignment. For federally related transactions, the final value opinion must represent market value as defined by federal regulation.
Related Terms
Reconciliation
The process by which an appraiser evaluates and weighs the results from the different valuation approaches (sales comparison, cost, and income) to arrive at a final opinion of value..
Market Value
The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus..
Effective Date (Date of Value)
The date on which the appraiser's opinion of value applies.
Scope of Work
The type and extent of research and analysis performed in an appraisal assignment.
More in Valuation Approaches
View allSales Comparison Approach
A valuation method that estimates a property's value by comparing it to similar properties that have recently sold in the same market area.
Cost Approach
A valuation method that estimates value by calculating the cost to reproduce or replace the improvements, subtracting accrued depreciation, and adding the land value.
Income Approach
A valuation method that estimates a property's value based on the income it generates or is expected to generate.
Comparable Sale
A recently sold property that is similar to the subject property in terms of location, size, condition, and features, used as evidence to support the appraiser's opinion of value in the sales comparison approach..