Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the distinction between market value and sales price?

Market value is always higher
There is no difference
Market value is an estimate by an appraiser, not the sales price
Sales price includes taxes and fees, market value does not

The correct answer is: Market value is an estimate by an appraiser, not the sales price

Market value is calculated by an appraiser and is generally used for mortgage purposes. It is an estimate of the worth of a property based on comparable sales and other factors. On the other hand, the sales price is the actual amount that a property is sold for. It may include taxes and fees, while market value does not. Option A is incorrect because market value can sometimes be lower than the sales price. Option B is incorrect because there is a clear distinction between the two. Option D is incorrect because sales price may or may not include taxes and fees depending on the agreement between the buyer and seller.