Alabama Real Estate Practice Exam

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Master your Alabama real estate exam with our comprehensive practice test. Tailored feedback, expert tips, and up-to-date questions to ensure your success!

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What does the assessed value represent?

Final sale price of a property
Value for insurance purposes
Tax value of your property
Bank's valuation for loan purposes

The correct answer is: Tax value of your property

The assessed value represents the tax value of the property. This is determined by the local government or tax authority and is used to calculate property taxes. The final sale price of a property (option A) is the agreed-upon amount between the buyer and seller, and may not accurately reflect the property's true value. The value for insurance purposes (option B) is based on the cost to rebuild the property in case of damage or loss, which may differ from the assessed value. The bank's valuation for loan purposes (option D) is the amount the bank deems the property is worth in order to secure a loan, which may not necessarily reflect the assessed value.