Property Valuation
The 'market value' of a property in Colorado is best defined as:
AThe price the seller paid originally plus improvements
BThe most probable price in an arm's length transaction between informed, willing buyers and sellers, neither under compulsion✓ Correct
CThe assessed value multiplied by the assessment ratio
DThe replacement cost of the improvements plus land value
Explanation
Market value is the price at which a property would sell in a competitive market with both buyer and seller being knowledgeable, acting prudently, not under compulsion, and the property exposed to the market for a reasonable time.
Related Colorado Property Valuation Questions
- Colorado's 'mass appraisal' process used by county assessors differs from an individual appraisal in that it:
- In Colorado, the 'economic life' of an improvement refers to:
- In the income approach to value, the capitalization rate (cap rate) is calculated as:
- Effective age in a Colorado appraisal differs from actual age because effective age reflects:
- The 'land residual technique' in Colorado appraisal is used to:
- Under Colorado property tax assessment, residential properties are assessed at what percentage of actual (market) value?
- Under Colorado appraisal standards, USPAP requires that an appraiser's report include:
- An appraiser in Colorado uses 3 comparable sales to value a property. The adjusted values are $385,000, $392,000, and $395,000. What is the most likely final value indication from reconciliation?
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