While it is often sufficient to rely on informal methods of estimating the market value of real estate assets,the complexity and large dollar value of many real estate decisions dictate that formal estimates based on methodical collection and analysis of relevant market data should be utilized.The unbiased written estimate of the market value of a property is
Commonly referred to as a(n):
A)arm's length transaction
B)appraisal
C)property adjustment
D)reconciliation

Question

Quizplus · Accepted Answer

The unbiased written estimate of the market value of a property is commonly referred to as an appraisal. An appraisal involves a formal methodical collection and analysis of relevant market data to determine the market value of a property. It is a critical tool used in many large real estate transactions and decisions. Arm's length transaction, property adjustment, and reconciliation are not synonyms for an unbiased written estimate of market value.

While It Is Often Sufficient to Rely on Informal Methods