PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Fair market value
Fair market value is the amount a knowledgeable, willing buyer and seller would agree upon in an arm's-length transaction when neither is compelled and both have reasonable exposure to the market.
Valuation and Market Analysis
Valuation foundations
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Fair market value mean?
Fair market value is the amount a knowledgeable, willing buyer and seller would agree upon in an arm's-length transaction when neither is compelled and both have reasonable exposure to the market.
How do you separate the nearest exam answer?
Market value is an opinion of the most probable price under stated conditions. Market price is the amount actually paid and can differ because of motivation, financing, or unusual terms.
What changes or stays the same in Georgia?
Georgia property-tax calculations generally begin with fair market value and apply the 40 percent assessment ratio before millage and exemptions.
A family transfer at a below-market price does not necessarily establish the property's fair market value because the deal may not be arm's length.
Do not assume the latest sale price is automatically the correct value in every set of transaction conditions.
Memory cue: Do not assume the latest sale price is automatically the correct value in every set of transaction conditions.PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
Which statement correctly explains Fair market value?
- A
Assessed value is the taxable value produced by applying the legal assessment ratio to fair market value before subtracting any exemption the problem or jurisdiction directs.
- B
Fair market value is the amount a knowledgeable, willing buyer and seller would agree upon in an arm's-length transaction when neither is compelled and both have reasonable exposure to the market.
- C
An appraisal is an independent, supportable opinion of value developed by a qualified appraiser for a stated property interest, effective date, intended use, and set of assignment conditions.
- D
A comparative market analysis is a broker's analysis of relevant market data and comparable properties to help a seller choose a listing strategy or a buyer evaluate an offer.
Fair market value is correct. Fair market value is the amount a knowledgeable, willing buyer and seller would agree upon in an arm's-length transaction when neither is compelled and both have reasonable exposure to the market. Market value is an opinion of the most probable price under stated conditions. Market price is the amount actually paid and can differ because of motivation, financing, or unusual terms. Georgia property-tax calculations generally begin with fair market value and apply the 40 percent assessment ratio before millage and exemptions.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Valuation and Market Analysis complete lesson
https://www.passgeorgiarealestate.com/study-guide/valuation/principles-of-value
Official exam administration and content-outline source.
https://test-takers.psiexams.com/api/content/bulletin/4672Official source for fair market value, the 40 percent assessment ratio, and ad valorem taxation.
https://dor.georgia.gov/property-tax-valuationCongressionally authorized source for USPAP and appraisal standards.
https://appraisalfoundation.org/imis/TAF/Standards/Appraisal_Standards/TAF/Standards/Appraisal_Standards.aspx