Property Valuation

In an Iowa appraisal report, the term 'market value' means:

AThe price the lender is willing to loan
BThe most probable price a property would sell for in an arm's-length transaction in a competitive market✓ Correct
CThe assessed value as determined by the county assessor
DThe replacement cost of the property

Explanation

Market value is defined as the most probable price that a property would bring in a competitive and open market under all conditions requisite to a fair sale, assuming both buyer and seller are knowledgeable and acting without duress.

Related Iowa Property Valuation Questions

Practice More Iowa Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Iowa Quiz →