Property Valuation
In Arizona, when a buyer pays more than the appraised value for a property, the difference is called:
AThe appraisal gap✓ Correct
BA premium over market value
CSpeculative value
DSubjective value
Explanation
An appraisal gap is the difference between the appraised value and the contract price when the contract price exceeds the appraisal. The buyer may need to pay the gap in cash or renegotiate with the seller.
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