Property Valuation
Which of the following best defines 'market value' in Michigan appraisal?
AThe price the owner paid for the property
BThe most probable price a knowledgeable, willing buyer would pay a willing seller in an arm's-length transaction with reasonable exposure to the market✓ Correct
CThe price determined by the local property tax assessor
DThe replacement cost minus depreciation
Explanation
Market value in Michigan appraisal is the most probable price a property would sell for in a competitive, open market under fair conditions, with both buyer and seller acting knowledgeably, prudently, and free from undue pressure.
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