Property Valuation
What does 'market value' assume about the buyer and seller?
ABoth parties are under pressure to transact quickly
BBoth are knowledgeable, acting in their own best interest, not under duress, and the property has been on the market for a reasonable time✓ Correct
CThe seller is always motivated to sell below market
DThe buyer always knows more than the seller
Explanation
Market value assumes both buyer and seller are typically motivated, knowledgeable about the market, acting prudently, not under undue pressure, and that a reasonable marketing period has occurred. This distinguishes market value from distressed sale prices.
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