Property Valuation
A Wisconsin appraiser's estimate of value must always reflect:
AThe highest possible price the property could ever achieve
BThe most probable price a property would sell for in an arm's-length transaction✓ Correct
CThe assessed value for tax purposes
DThe seller's desired net proceeds
Explanation
Market value is defined as the most probable price a property would sell for in an arm's-length transaction between a willing buyer and willing seller, with neither under unusual pressure.
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Key Terms to Know
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.
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.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Math Concepts
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