Property Valuation
The market value of a property assumes:
AA distressed seller who needs to close quickly
BAn arm's length transaction between knowledgeable parties with neither under compulsion to act✓ Correct
CThe property has been on the market less than 30 days
DThe buyer is using a government-backed loan
Explanation
Market value is the most probable price a property would bring in a competitive, open market assuming arm's length conditions: a willing buyer, a willing seller, both knowledgeable, and neither under undue pressure to act.
Related Tennessee Property Valuation Questions
- A Tennessee appraiser who accepts an appraisal assignment contingent on the result exceeding a certain value is:
- In Tennessee, an appraiser estimates a property's value is $285,000 via the sales comparison approach and $292,000 via the cost approach. The final reconciled value will be:
- Paired sales analysis is a method used in the sales comparison approach to:
- An appraiser who receives pressure from a lender to 'hit' a specific value should:
- In Tennessee, an appraiser's 'scope of work' determination is important because it:
- In Tennessee, when appraising a historic home in Nashville's Germantown neighborhood, the appraiser would likely give the most weight to which approach?
- Tennessee's rapidly growing Chattanooga real estate market has seen significant investment due to:
- An appraiser adjusts comparable sales for time to account for:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →