Property Valuation
For Massachusetts tax assessment purposes, property is assessed at 'full and fair cash value,' which is defined as:
AThe highest price the property would bring at a forced sale
BThe price a willing buyer would pay a willing seller in an arm's length transaction✓ Correct
CThe cost to replace the property new minus depreciation
DThe capitalized income value regardless of market conditions
Explanation
Massachusetts law defines 'full and fair cash value' for tax assessment purposes as the price the property would bring in a fair market sale between a willing buyer and a willing seller, both with knowledge of all relevant facts. This is equivalent to market value.
Related Massachusetts Property Valuation Questions
- An appraisal must always be reconciled to a final value estimate. Reconciliation means the appraiser:
- Functional obsolescence in a property refers to:
- The income approach to value is most appropriate for which Massachusetts property type?
- A Massachusetts commercial appraiser uses a 'direct capitalization' approach versus a 'discounted cash flow' (DCF) analysis. DCF is preferred when:
- A Massachusetts commercial appraiser calculates a capitalization rate by:
- The concept of 'linkage' in Massachusetts commercial real estate valuation refers to:
- The gross rent multiplier (GRM) is calculated as:
- Which type of depreciation is generally considered 'incurable'?
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