Property Valuation
The 'market value' definition used in federally related transactions in Alaska requires that the transaction be:
AMade under distressed conditions to reflect the true market
BAn arm's-length transaction with both parties acting prudently and in their own interest✓ Correct
CCompleted within 30 days of listing
DA cash transaction with no financing
Explanation
Market value requires an arm's-length transaction between a willing buyer and willing seller, both having reasonable knowledge of the facts, neither being under compulsion to buy or sell, and both acting in their own best interest. Non-arm's-length transactions (foreclosures, family sales) are not typically market value transactions.
Related Alaska Property Valuation Questions
- An Alaska property sold for $485,000. The appraiser determines the land is worth $95,000. The improvements' depreciated value (from the cost approach) is:
- An Alaska appraiser must certify in their report that the appraisal was performed in accordance with:
- In Alaska, 'assemblage' refers to:
- A Fairbanks property's estimated remaining economic life is 35 years. The building is 15 years old with an original economic life of 50 years. The effective age is:
- A 'before and after' method is used in Alaska eminent domain appraisals to:
- The 'land-to-value ratio' in an appraisal is significant because it:
- In Alaska, 'reconciliation' in the appraisal process means the appraiser:
- In Alaska, when an appraiser refers to the 'subject property,' they mean:
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →