Property Valuation
Which of the following BEST defines 'market value'?
AThe price a seller would accept under distress conditions
BThe most probable price a property would bring in a competitive open market under normal conditions✓ Correct
CThe property's assessed value for tax purposes
DThe replacement cost of the improvements
Explanation
Market value is the most probable price a property should bring in an open, competitive market assuming: both buyer and seller are knowledgeable, acting in their own interest, not under duress, and the property has been exposed to the market for a reasonable time.
Related Alabama Property Valuation Questions
- Which approach to value is most commonly used to appraise single-family residences?
- Replacement cost in the cost approach uses the cost to build a structure:
- A broker's comparative market analysis (CMA) is used to:
- Which of the following statements about land value is TRUE?
- A comparable sale that is an REO (Real Estate Owned / bank foreclosure) sale may require an adjustment because:
- A property purchased for $280,000 with improvements costing $45,000 was sold 2 years later for $370,000. What is the total gain?
- A residential property's square footage of gross living area (GLA) is measured:
- A capitalization rate decreasing over time in a market generally indicates:
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