Property Valuation
What does the term 'market value' mean in real estate appraisal?
AThe price a property is currently listed for on the MLS
BThe most probable price a property would bring in an arm's-length transaction between informed, willing buyers and sellers with neither under duress✓ Correct
CThe assessed value determined by the county assessor
DThe replacement cost of the improvements minus depreciation
Explanation
Market value is defined as the most probable price a property would sell for in a competitive and open market under all conditions requisite to a fair sale, with both buyer and seller acting knowledgeably, prudently, and without compulsion. It differs from list price, assessed value, or insurance value.
Related California Property Valuation Questions
- When using the sales comparison approach, which of the following properties would typically be selected as a comparable sale?
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