Property Valuation
Market value is best defined as:
AThe price the owner paid for the property
BThe most probable price a property would bring in an arm's-length transaction between informed buyers and sellers✓ Correct
CThe assessed value determined by the county for tax purposes
DThe appraised value determined by the FHA
Explanation
Market value is the most probable price a property would sell for in a competitive, open market under fair conditions, with buyers and sellers acting knowledgeably and in their own best interests.
Related Arkansas Property Valuation Questions
- Which appraisal approach estimates value by analyzing recent sales of comparable properties?
- Which appraisal approach is most commonly used for appraising special-purpose properties such as churches or schools?
- The principle of PROGRESSION states that:
- Which type of depreciation is caused by factors OUTSIDE the property, such as a nearby highway being constructed?
- Accrued depreciation in the cost approach equals:
- Effective age differs from actual age in that effective age reflects:
- A property has replacement cost new of $200,000, depreciation of $40,000, and land value of $50,000. What is the appraised value under the cost approach?
- Net operating income (NOI) is calculated as:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →