Property Valuation
Market value is defined as the most probable price a property will bring under which conditions?
AForced sale conditions where the seller must sell immediately
BAn arm's-length transaction with no undue pressure and informed parties✓ Correct
CA transaction between related parties with a discounted price
DThe assessed value set by the county assessor
Explanation
Market value assumes an arm's-length transaction between an informed, willing buyer and an informed, willing seller, with reasonable marketing time and no compulsion on either party. It is the most probable price in an open and competitive market.
Related Oklahoma Property Valuation Questions
- The income capitalization approach calculates value by:
- Accrued depreciation in the cost approach to appraisal is the sum of:
- An Oklahoma property's value is depressed because the neighborhood is transitioning from residential to commercial use. This is an example of which type of depreciation?
- Principles of value state that value is created by the interaction of supply and demand. Which principle holds that value is influenced by what a prudent buyer would pay for a similar property?
- Plottage (assemblage) value refers to:
- Which type of depreciation is generally considered incurable?
- Functional obsolescence in real estate refers to:
- When an appraiser uses the cost approach, what is added to the site value to determine the property's total value?
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