Property Valuation
An appraisal that determines 'market value' estimates the price that:
AA. The current owner paid for the property
BB. A knowledgeable, willing buyer would pay and a willing seller would accept under normal market conditions✓ Correct
CC. The lender requires for loan approval
DD. The county assessor uses for tax purposes
Explanation
Market value is the most probable price a property would bring in an arm's-length transaction under normal conditions, with both buyer and seller being knowledgeable, willing, and under no undue pressure.
Related Georgia Property Valuation Questions
- Which type of depreciation in the cost approach is considered incurable because it comes from outside the property?
- External obsolescence (also called economic or locational obsolescence) is:
- The sales comparison approach to value is most appropriate for:
- The 'cost to cure' method of depreciation estimates functional obsolescence by calculating:
- When performing a comparable market analysis (CMA), a Georgia agent should select comparables that:
- An appraiser's final 'reconciliation' step in the appraisal process involves:
- The principle of 'substitution' in real estate appraisal means:
- The 'principle of conformity' in real estate valuation states that:
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