Property Valuation
In Tennessee, which of the following best describes 'market value'?
AThe price the seller paid for the property
BThe most probable price that a property would bring in a competitive market under normal sale conditions✓ Correct
CThe insurance replacement value of the property
DThe assessed value for property tax purposes
Explanation
Market value is the most probable price a property would sell for in a competitive, open market where buyer and seller are both knowledgeable and acting without duress — the standard definition used in appraisal.
Related Tennessee Property Valuation Questions
- In Tennessee, an appraiser who assigns a value higher than market value to please the lender or buyer is:
- In Tennessee, an appraiser who knowingly makes a fraudulent appraisal may face:
- Economic life of a building is defined as:
- In Tennessee's rapidly growing markets like the Nashville suburb of Franklin (Williamson County), appraisers face the challenge of:
- Comparative Market Analysis (CMA) is typically prepared by a:
- When appraising new construction, the cost approach is often most appropriate because:
- Absorption rate in real estate market analysis measures:
- When using the gross rent multiplier (GRM), if a property rents for $1,500/month and comparable properties sell at a GRM of 120, what is the estimated value?
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