Property Valuation
In Virginia, a property's market value is best defined as:
AThe price the owner wants for the property
BThe most probable price in cash (or equivalent) in a competitive, open market between informed parties neither under compulsion✓ Correct
CThe tax-assessed value set by the locality
DThe appraised value minus outstanding mortgage balances
Explanation
Market value is the most probable price a property would bring in a competitive, open market with informed, willing buyers and sellers, neither under duress, with reasonable exposure time.
Related Virginia Property Valuation Questions
- A Virginia investor calculates the capitalization rate for a potential acquisition. If the cap rate is rising in the market, property values are generally:
- Which appraisal approach is most commonly used to value a single-family residence in a Virginia suburb?
- In Virginia, the 'Band of Investment' technique is used in the income approach to:
- A Virginia property that is adjacent to a transit station may receive a premium because of enhanced accessibility and walkability. Appraisers call this:
- In the income approach to appraisal, 'potential gross income' (PGI) is defined as:
- The regression principle in Virginia appraisal holds that:
- In the cost approach, the value formula is:
- The 'principle of anticipation' in Virginia real estate appraisal means value is based on:
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