Property Valuation
An Oklahoma appraiser is asked to estimate market value. Market value is defined as:
AThe price the seller needs to pay off their mortgage
BThe most probable price a property should bring in an arm's-length transaction between a willing buyer and willing seller, both reasonably informed, with neither under unusual pressure✓ Correct
CThe assessed value for tax purposes
DThe insurance replacement cost
Explanation
Market value reflects what a property would sell for in an open market transaction between knowledgeable, willing parties acting in their best interests without compulsion. This is the definition used by appraisers for mortgage lending and most valuation purposes.
Related Oklahoma Property Valuation Questions
- An Oklahoma appraiser must comply with USPAP's Competency Rule if they are asked to appraise a type of property they have not previously appraised. This means they must:
- Functional obsolescence in an Oklahoma property refers to:
- An Oklahoma appraisal that comes in below the contract price can result in:
- In Oklahoma, the principle of 'contribution' in real estate appraisal means:
- In Oklahoma oil country, mineral rights can significantly affect property value. A property with an active oil and gas lease producing royalty income would be valued:
- The 'highest and best use' of a property is defined as the reasonably probable use that is:
- In Oklahoma, when an appraiser calculates the replacement cost of a building, they estimate:
- An Oklahoma appraiser performing a retrospective appraisal for a date in the past must:
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