Property Valuation
When a licensed appraiser estimates the value of a property, the appraiser is providing an opinion of:
AAssessed value
BMarket value✓ Correct
CInsurance replacement value
DTax-appraised value
Explanation
An appraisal is an opinion of market value — the most probable price a property would sell for in a competitive and open market under fair sale conditions. Market value is distinct from assessed value (used for taxation) or insurance value.
Related Alaska Property Valuation Questions
- The principle of plottage (assemblage) in real estate valuation means that:
- An Alaska appraiser using the cost approach calculates the following: land value $150,000, replacement cost new of improvements $400,000, total depreciation $80,000. The indicated value is:
- In Alaska, a property's 'insurable value' differs from its 'market value' because insurable value:
- In Alaska, the 'capitalization rate' is affected primarily by:
- In Alaska, 'deterioration' in appraisal refers to which form of depreciation?
- An Alaska appraiser values a 5-acre rural parcel. Comparable sales exist for 2-acre parcels, but the 5-acre parcel does not simply equal 2.5 times the value of a 2-acre parcel. This reflects the principle of:
- An Alaska appraiser who determines a comparable is 'physically inferior' to the subject property will make which adjustment?
- In Alaska, the 'direct capitalization' method of valuation divides which two figures?
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