California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

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What is the definition of market value of a property?

Highest price in terms of money
Price a seller hopes to attain
Most probable price
Assessed value for tax purposes

The correct answer is: Most probable price

Market value of a property refers to the most probable price a property would receive in the current market. Option A is not correct because it implies that market value is always the highest possible price, which is not always the case. Option B is incorrect because it is subjective and based on the seller's hopes rather than the actual market value. Option D is also not correct because assessed value for tax purposes may not reflect the true market value of a property.