Property Valuation
In South Dakota, which of the following best describes 'market value' as used in real estate appraisal?
AThe price the owner paid for the property
BThe most probable price a property will bring in a competitive and open market under all conditions requisite to a fair sale✓ Correct
CThe replacement cost of the property minus depreciation
DThe assessed value multiplied by a market adjustment factor
Explanation
Market value is the most probable price a property would sell for in an open, competitive market where buyer and seller are both acting prudently and knowledgeably, without undue pressure, and the property has been on the market for a reasonable time.
Related South Dakota Property Valuation Questions
- Which appraisal principle states that the value of a property is affected by the values of surrounding properties?
- The principle of substitution in South Dakota real estate states that:
- In the sales comparison approach to value, an appraiser makes adjustments to comparable sales for differences between the comparable and the subject property. If a comparable sale has a feature the subject property lacks, the appraiser should:
- Functional obsolescence in a South Dakota property refers to:
- A South Dakota appraiser makes adjustments in the sales comparison approach by:
- Which principle of value states that the value of a property is affected by the values of surrounding properties in South Dakota?
- The principle of balance in South Dakota real estate appraisal states that:
- South Dakota properties near the Badlands National Park or Black Hills may command premium values due to:
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →