Property Valuation
A Connecticut appraiser is asked to estimate the value of a property for estate tax purposes. The relevant standard of value is:
AInvestment value (to the specific estate)
BMarket value (the price a willing buyer would pay a willing seller in an arm's-length transaction)✓ Correct
CAssessed value (70% of market value)
DInsurance replacement cost value
Explanation
For estate tax purposes (and most appraisal purposes), the standard of value is market value—the most probable price a property would bring in a competitive, open market under fair sale conditions. This is the same standard used for mortgage lending and most real estate transactions.
Related Connecticut Property Valuation Questions
- A Connecticut property recently sold for $630,000. If the annual property taxes are $9,450, what is the effective tax rate as a percentage of the sale price?
- A Connecticut property sold six months ago at $495,000. Market values have increased 4% annually since then. What is the time-adjusted value today?
- A Connecticut appraiser is analyzing a sale that occurred 8 months ago. Since that time, the local market has appreciated 2% over 8 months. If the comparable sold for $420,000, what is the time-adjusted value?
- A Connecticut town revalues properties every several years to:
- A building has a reproduction cost of $800,000 and 15% total depreciation. What is the depreciated value of the improvements?
- The 'principle of substitution' in real estate appraisal states that:
- A Connecticut property's listing price is $550,000 and it sells for $565,000. The sale-price-to-list-price ratio is:
- An appraiser states that a Connecticut property has a 'remaining economic life' of 35 years. This means:
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