Arizona Real Estate License Practice Exam 2025 – All-in-One Resource to Pass with Confidence!

Market value is the term that refers to the financial representation of a property's worth. It is defined as the most probable price that a property would bring in a competitive and open market under all conditions requisite to a fair sale, with both buyer and seller acting prudently and knowledgeably. Essentially, market value assesses what a property is likely to sell for in the current market, taking into consideration factors such as location, condition, and recent sales of comparable properties.

Other terms listed may have their own significance in real estate but do not accurately capture the concept of a property's worth in a competitive market. Asset value can refer to the overall value of an entity's assets, which may include more than just real estate. List price is the initial price at which a property is offered for sale, but it does not necessarily reflect its market value, as it could be set above or below what the property would actually sell for. Property tax value is determined by local government assessments for taxation purposes and may not align with the current market conditions or property demand. Thus, market value is the most relevant and specific term that captures the financial representation of a property's worth in a market context.