Price property sold for in actual transaction is called?

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Prepare for the Real Estate Ownership Exam with multiple choice questions, flashcards, and detailed explanations. Master land use controls and financing to excel on your test.

Multiple Choice

Price property sold for in actual transaction is called?

Explanation:
The price a property actually sells for in a real transaction is market price. This is the realized amount agreed between a willing buyer and a willing seller in an arm’s-length sale, reflecting what the market actually paid. Appraised value is an estimate of worth prepared by a licensed appraiser, used for loans or assessments, not the actual sale price. Replacement cost is the expense to reproduce or rebuild the property today. Reconciliation is the appraisal process of balancing different value estimates to arrive at a final value, not the price seen in a specific sale.

The price a property actually sells for in a real transaction is market price. This is the realized amount agreed between a willing buyer and a willing seller in an arm’s-length sale, reflecting what the market actually paid.

Appraised value is an estimate of worth prepared by a licensed appraiser, used for loans or assessments, not the actual sale price. Replacement cost is the expense to reproduce or rebuild the property today. Reconciliation is the appraisal process of balancing different value estimates to arrive at a final value, not the price seen in a specific sale.

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