Property Valuation
The assessed value of a property for tax purposes is often:
AIdentical to market value
BA percentage of market value established by the taxing authority✓ Correct
CThe same as the appraised value for a mortgage
DSet by the property owner
Explanation
Assessed value is typically set at a percentage of market value (the assessment ratio) by the local taxing authority and is used to calculate property taxes.
Related Alabama Property Valuation Questions
- Which of the following BEST defines 'market value'?
- A property manager reports the following: Gross potential income $120,000; Vacancy 5%; Operating expenses $40,000. What is the NOI?
- Which type of depreciation is generally considered incurable and originates from outside the property?
- The cost approach to value in Alabama is best used for:
- In the sales comparison approach, a comparable property that sold for more than the subject property due to a superior feature would require:
- A property has a gross monthly rent of $2,000. Comparable properties have sold at a Gross Rent Multiplier (GRM) of 120. What is the estimated value?
- Depreciation in an appraisal context refers to:
- The highest and best use of a property is defined as the use that is:
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