What is 'value in use' versus 'value in exchange' in Delaware real estate?
Why Value in use is the value to the current occupant for their specific purpose; value in exchange (market value) is the most probable sale price to any buyer Is Correct
Answer B: Value in use is the value to the current occupant for their specific purpose; value in exchange (market value) is the most probable sale price to any buyer
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
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Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Math Concepts
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