Property Valuation
A Virginia appraiser is required to develop an opinion of value that reflects the:
AOwner's desired sales price
BMost probable price a knowledgeable buyer and seller would agree on in an arm's-length transaction✓ Correct
CAssessed value for tax purposes
DListing price set by the broker
Explanation
Market value in appraisal is defined as the most probable price a property would bring in a competitive and open market under arm's-length conditions between a willing buyer and willing seller.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Math Concepts
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