Property Valuation
Market value is best defined as:
AThe price the seller needs to pay off the mortgage
BThe most probable price a property would bring in a competitive and open market under all conditions requisite to a fair sale✓ Correct
CThe assessed value for property tax purposes
DThe insurance replacement cost of the building
Explanation
Market value is the most probable price a property would sell for in a competitive open market with a willing, informed buyer and seller, adequate time for exposure, and typical financing.
Related Massachusetts Property Valuation Questions
- A Massachusetts vacation property near Cape Cod is most influenced by which factor in its valuation?
- For Massachusetts tax assessment purposes, property is assessed at 'full and fair cash value,' which is defined as:
- Under USPAP, a Massachusetts appraiser must retain work files for a minimum of:
- A Massachusetts appraiser analyzes the 'market conditions' for a neighborhood report. Key market indicators include:
- An appraiser finds that a comparable home sold for $420,000. It has a garage worth $15,000 that the subject property lacks, and the comparable's lot is $10,000 smaller than the subject's. What is the adjusted sale price?
- A Massachusetts commercial tenant pays rent of $20 per square foot for a 5,000 sf space. Annual rent is:
- Which Massachusetts property would most likely be appraised using the cost approach as the primary method?
- The 'effective gross income' (EGI) of a rental property is calculated as:
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →