Which statement about the value definition used in an appraisal is correct?

• A. It must always be market value
• B. It must be the most probable price
• C. It must be appropriate for the assignment
• D. It doesn't matter

Answer: (C)

The key point is that the value definition used in an appraisal must fit the assignment’s purpose. In practice, which definition you apply—whether market value, value in use, investment value, liquidation value, or another defined value—depends on what the client needs and how the property will be used. This choice shapes the data you gather, the methods you apply, and the conclusions you reach, ensuring the appraisal answer actually addresses the problem posed. If you pick a definition that doesn’t match the assignment, the result won’t answer the client’s question or support the intended use. While market value is common, it isn’t mandatory for every assignment; other definitions are appropriate when the assignment requires them. The statement that the value definition must be appropriate for the assignment is the correct one.