Property Valuation
What is 'market value' as defined in appraisal practice?
AThe price a seller needs to net after commissions and closing costs
BThe most probable price a property would bring in an arm's-length transaction on the open market✓ Correct
CThe assessed value set by the county tax assessor
DThe appraised value determined by the lender's software
Explanation
Market value is the most probable price a property would sell for in a competitive and open market under all conditions requisite to a fair sale, where buyer and seller are knowledgeable, acting prudently and in their own interest.
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