California Real Estate Practice Exam

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Master the California Real Estate Exam with our comprehensive practice quiz. Get expert tips, detailed content review, and insider strategies to pass on your first try.

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The most probable price a well-informed buyer would pay for a property that has been on the market for a reasonable period of time is a good definition of _______.

Assessed value
Market value
Listing price
Replacement cost

The correct answer is: Market value

Market value is defined as the most probable price that a well-informed buyer would pay for a property that has been on the market for a reasonable period of time. This means that market value takes into consideration the current state of the real estate market and the condition of the property. Assessed value refers to the value assigned to a property by a government entity for the purpose of taxation, and may not reflect the current market value. Listing price is the price that the seller sets for their property, and may or may not reflect the market value. Replacement cost is the cost of building a similar property from scratch, and may not reflect the current market value of the property. Therefore, option B, market value, is the best definition for the given question.