Under Virginia law, which of the following best describes the term 'fair market value' as used in property tax assessment?
Correct Answer
B) The price a property would sell for between a willing buyer and willing seller, neither under compulsion, both with reasonable knowledge
Fair market value, as used in Virginia property tax assessment under Va. Code § 58.1-3201, is defined as the price a property would bring in a competitive and open market under all conditions requisite to a fair sale — with a willing buyer and willing seller, neither under compulsion to buy or sell, and both having reasonable knowledge of the relevant facts. This is the standard definition used in Virginia for assessment purposes.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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