Real estate appraisers generally distinguish among the concepts of market value, investment value, and transaction value. Which of the following statements best describes the concept of market value?
A) It is an estimate of the most probable selling price of a property in a competitive market.
B) It is the value a particular investor places on a property.
C) It is the price we observe when a property is sold.
D) It is the maximum amount that a seller would be willing to accept.

Question

Quizplus · Accepted Answer

Market value is an estimate of the most probable selling price of a property in a competitive market. It is usually determined by comparing similar properties that have recently sold in the area, taking into account factors such as location, size, condition, and amenities. It is not based on the personal preferences or circumstances of any particular buyer or seller.

Real Estate Appraisers Generally Distinguish Among the Concepts of Market