Property Valuation
Market value is defined as:
AThe price the owner paid for the property
BThe most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale✓ Correct
CThe assessed value used for tax purposes
DThe insurance replacement cost of the property
Explanation
Market value is the most probable price that a property would sell for in a competitive, open market between a willing buyer and seller, both with knowledge of the facts, neither under undue pressure, and with reasonable time for exposure.
Related Arkansas Property Valuation Questions
- Which type of depreciation is caused by factors OUTSIDE the property, such as a nearby highway being constructed?
- A comparable property sold for $250,000 but has a garage worth $10,000 that the subject property lacks. The adjusted value of the comparable for comparison to the subject is:
- A property's highest and best use is defined as the use that is:
- The principle of balance in appraisal states that:
- 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?
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- Which approach is typically weighted most heavily when appraising a 4-unit residential rental property for a conventional mortgage?
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