Property Valuation
In Michigan, 'market value under duress' (distress value) is typically:
AThe same as fair market value
BLower than fair market value because the seller is under pressure to sell quickly without adequate market exposure✓ Correct
CHigher than fair market value due to urgency premiums
DOnly used in foreclosure appraisals
Explanation
Distress value (liquidation value) is typically lower than market value because the seller lacks the time to expose the property to the full market. Foreclosure sales and distressed sales in Michigan often sell below market value for this reason.
Related Michigan Property Valuation Questions
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