Property Valuation
The market value of a Maryland property is best defined as:
AThe appraised value for tax purposes
BThe most probable price a property would sell for in an arm's-length transaction between knowledgeable, willing parties✓ Correct
CThe insurance replacement cost
DThe assessed value set by SDAT
Explanation
Market value is the most probable price a property will bring in a competitive and open market under arm's-length conditions — both buyer and seller are knowledgeable and acting without compulsion.
Related Maryland Property Valuation Questions
- The Maryland SDAT assesses property at what percentage of its full cash value?
- In an appraisal, when a comparable property sold is superior to the subject property in a specific feature, the appraiser will:
- USPAP requires a Maryland appraiser to maintain workfile records for at least:
- Functional obsolescence in a Maryland home would BEST be described as:
- Reproduction cost and replacement cost differ in that:
- A Maryland property's gross rent multiplier (GRM) is 120, and the monthly rent is $2,500. The indicated value is:
- A property generates a net operating income (NOI) of $45,000. The market capitalization rate is 6%. What is the estimated value?
- The principle of conformity in Maryland real estate appraisal states that:
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