Property Valuation
Which of the following best defines 'market value' in a Florida appraisal context?
AThe price a buyer must pay as determined by the lender
BThe most probable price a property would sell for in an arm's-length transaction between informed, willing buyer and seller✓ Correct
CThe assessed value set by the county property appraiser
DThe replacement cost of the improvements
Explanation
Market value is the most probable price a property would bring in an arm's-length transaction under normal market conditions, with both buyer and seller being knowledgeable, acting prudently, and neither being under duress.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Math Concepts
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