Property Valuation
In West Virginia, which type of value is used when a property must be sold quickly in a forced sale?
AMarket value
BAssessed value
CLiquidation value✓ Correct
DInvestment value
Explanation
Liquidation value (or forced sale value) is the most probable price a property would bring in a forced sale under a compressed time period. It is typically lower than market value because of the time pressure and limited market exposure.
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Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Math Concepts
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