Property Valuation
In Oregon, which of the following BEST describes a 'market value' appraisal?
AThe price the seller wants to receive
BThe most probable price a property would sell for in an arm's-length transaction between knowledgeable and willing parties under normal market conditions✓ Correct
CThe assessed value established by the county for property tax purposes
DThe replacement cost of the property as determined by an insurer
Explanation
Market value is the most probable price a property would bring in an arm's-length sale between a knowledgeable, willing seller and a knowledgeable, willing buyer, with neither being under compulsion to sell or buy, and both having access to relevant information. This is the standard definition used in Oregon appraisal practice under USPAP.
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