Property Valuation
In Washington appraisal practice, 'market value' is defined as the most probable price a property would bring in:
AA forced sale under time pressure
BAn arm's-length transaction between knowledgeable, willing parties neither under pressure✓ Correct
CThe highest possible auction price
DAn assessed value determined by the county
Explanation
Market value is the most probable price a property would sell for in an arm's-length transaction — between a knowledgeable, willing buyer and seller, neither under undue duress — exposed to the open market for a reasonable period.
People Also Study
Related Washington Questions
- A Washington property owner wants to sell to a specific buyer at below market value. The property is encumbered by a deed of trust with $300,000 owed. The lender's approval is needed for which type of sale?Property Ownership
- A Washington appraiser encounters a property that was recently sold between related parties (family members) at a price that is 30% below market value. Under USPAP, the appraiser should:Property Valuation
- In Washington, USPAP (Uniform Standards of Professional Appraisal Practice) governs appraisers because:Property Valuation
- In Washington, a broker's price opinion (BPO) differs from an appraisal because:Property Valuation
- A Washington assessor revalues all properties annually by statute. For residential properties, the standard assessment should be at what percentage of fair market value?Property Valuation
- A Washington appraisal uses the cost approach. Land is worth $95,000. Building replacement cost is $340,000. Total physical depreciation is 15%. What is the total property value?Real Estate Math
- A Washington property is valued at $780,000. The assessed value is 95% of market value. At a tax rate of $11.50 per $1,000 assessed value, what is the annual tax?Real Estate Math
- A Washington appraisal comparable sold for $485,000. It is located on a busy street which penalizes value by $18,000 compared to the subject's quiet street location. The adjusted comparable value is:Real Estate Math
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.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Math Concepts
Study This Topic
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →