Property Valuation
What is 'market value'?
AThe price a seller would ideally like to receive
BThe most probable price a property would sell for in a competitive market between informed parties✓ Correct
CThe assessed value for tax purposes
DThe replacement cost of the improvements
Explanation
Market value is the most probable price a property would sell for in an open, competitive market, with both buyer and seller acting knowledgeably and without undue pressure.
Related California Property Valuation Questions
- The income approach to value is MOST appropriate for:
- What is a 'land residual' in real estate investment analysis?
- Which appraisal approach is most appropriate for valuing a special-purpose property such as a church or school with few comparable sales?
- An appraiser determines that the highest and best use of a parcel is for commercial development, not its current residential use. How does this affect the appraisal?
- A seller has a home with market value of $750,000. The seller wants to net $700,000 after paying a 6% commission. Can the seller achieve this by listing at $750,000?
- In the sales comparison approach, the appraiser makes adjustments to the comparable sales to account for differences from the subject property. If a comparable has a feature the subject lacks, the adjustment is:
- What is 'depreciation' in real estate appraisal?
- According to the principle of 'contribution,' an improvement adds value to a property:
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →