Property Valuation
In NH, a property's 'market value' as defined for appraisal purposes assumes:
AA distressed seller who must sell immediately
BA willing buyer and willing seller acting prudently in an arm's length transaction with adequate market exposure✓ Correct
CThe highest price any single buyer would ever pay
DA value set by the municipality's assessor
Explanation
Market value assumes a willing, knowledgeable buyer and a willing, knowledgeable seller acting in their own best interests in an open and competitive market with reasonable exposure time, with neither party under compulsion to buy or sell. Distressed or foreclosure sales typically do not reflect market value.
Related New Hampshire Property Valuation Questions
- A NH appraiser's final value opinion for a residential property of $425,000 is properly rounded because:
- In an appraisal, reconciliation is the process of:
- A NH appraiser who values a Laconia waterfront property notes that it commands a significant premium over non-waterfront properties. This premium reflects:
- A NH appraiser who identifies a comparable sale between family members at a non-market price should:
- The principle of substitution states that a buyer will not pay more for a property than:
- The appraisal principle of 'substitution' holds that:
- In NH real estate, 'functional obsolescence' refers to a loss in value due to:
- A NH appraiser notes that a property's neighborhood is in the 'decline' phase of the neighborhood life cycle. This typically means:
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