Ace the Texas Law Module 2025 – Smash the 20-Hour Power Test!

Question: 1 / 400

Define "market value" in the context of real estate.

The appraised value set by a bank

The price a property would sell for in a competitive market

Market value in real estate refers to the price a property would reasonably sell for in an open and competitive market, where both the buyer and seller are informed and acting in their best interests. This concept takes into account various factors such as current demand and supply, property condition, and the general economic environment, creating a basis for determining a fair transaction price.

Understanding market value is crucial for buyers, sellers, and real estate professionals, as it reflects what a buyer is willing to pay and what a seller is willing to accept, rather than a specific appraised value set by a bank or the price a seller may believe their property is worth. The other options presented may provide insights into different valuation scenarios but do not encapsulate the definition of market value as comprehensively as the correct choice does.

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The value estimated by the seller

The original purchase price of the property

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