Property Valuation
Price differs from value in real estate because price is:
AAlways equal to market value
BThe actual amount paid in a specific transaction, which may differ from market value✓ Correct
CThe government's assessment for tax purposes
DThe broker's estimate of probable selling price
Explanation
Price is the amount actually paid in a specific transaction. It may be higher or lower than market value if the parties were not fully informed, under compulsion, or transacting in a non-market context.
Related Arkansas Property Valuation Questions
- The principle of ANTICIPATION in appraisal states that:
- The 'band of investment' method of deriving a capitalization rate considers:
- When using the sales comparison approach, a 'gross living area' adjustment is made because:
- Which appraisal approach estimates value by analyzing recent sales of comparable properties?
- An appraiser uses a value-in-use estimate for which of the following?
- Functional obsolescence due to 'superadequacy' refers to:
- Economic life of an improvement differs from physical life in that it is:
- The principle of 'substitution' in real estate appraisal states that:
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