Question

In estimating the market value of a property, which of the following is an appraiser LEAST likely to consider relevant?

(a) If the transaction was made in cash, terms equivalent to cash, or other precisely revealed terms
(b) If the property had reasonable exposure in a competitive market
(c) If a fair sale was transacted with neither the seller nor the buyer acting under duress
(d) If the normal or intrinsic value of the property corresponds to its market value

Answer 1

An appraiser is least likely to consider the normal or intrinsic value of a property since market value is influenced by current demand and economic conditions that can differ from intrinsic value. The correct answer is option (D).

Step-by-step explanation:

In estimating the market value of a property, an appraiser is least likely to consider the normal or intrinsic value of the property corresponds to its market value (option d). When appraisers conduct market valuations, they look for factual data surrounding the transaction, such as if it was made in cash or terms equivalent to cash (option a), if the property had reasonable exposure in a competitive market (option b), and if the transaction was a fair sale without either the seller or buyer acting under distress (option c).

On the other hand, the 'normal or intrinsic value' is a theoretical concept and typically refers to what the property might inherently be worth under certain circumstances, rather than its current market value which can fluctuate based on actual demand, economic conditions, and other real-world factors.