Texas Property Tax Consultant Practice Exam

Which of the following is NOT a characteristic of market value?

1. The seller is pressured to sell quickly

2. Market exposure for a reasonable time

3. Buyer and seller act without duress

4. The property has a use in the current market

The correct answer is: The seller is pressured to sell quickly

Market value is defined by several key characteristics, one of which is that both the buyer and the seller have the ability to make decisions regarding the transaction without any undue pressure or urgency. This reflects a state of equilibrium in the marketplace where both parties can act in their best interests. When considering the characteristics of market value, an essential element is that the seller is not pressured to sell quickly. Rather, the presence of time allows for the property to be exposed to the market adequately so that an appropriate price can be determined based on demand and comparable sales. Thus, the notion that the seller must sell quickly contradicts the principle of market value which requires the property to be marketed for a reasonable amount of time to attract potential buyers and secure the best price possible. Furthermore, the other characteristics of market value reinforce the central theme of balanced transactions. Market exposure for a reasonable time ensures that the property has the opportunity to be evaluated properly in the context of the current market conditions. Additionally, both buyer and seller acting without duress ensures that the transaction is fair and reflective of true value, while the property's current use adds relevance to how it is perceived in the market. Therefore, while the other options align with the accepted understanding of market value, the element of