Certified Apartment Portfolio Supervisor (CAPS) Practice Exam - Module 2

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Prepare for the CAPS Exam with a comprehensive study of Module 2. Utilize our practice resources filled with flashcards, multiple choice questions, and thorough explanations to ensure your success!

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Which of the following is NOT a type of property value?

Market value
Emotional/sentimental value
Loan value
Replacement value

The correct answer is: Loan value

Loan value is considered a specific financial term used primarily in the context of financing and banks, referring to the amount of money a lender is willing to provide for a property based on its assessed value and the borrower's creditworthiness. While it is an important figure in real estate transactions, it does not define the inherent worth of a property itself. In contrast, market value reflects the price at which a property would sell in a competitive real estate market and is influenced by supply and demand factors. Emotional or sentimental value refers to the personal significance a property may hold for an individual, which can exceed its market or assessed value. Replacement value assesses how much it would cost to replace a property with a similar one at current prices. These distinctions underline the multifaceted nature of property valuation, emphasizing that while loan value is crucial for financing discussions, it does not categorize the intrinsic value of a property in the same way that market, emotional, or replacement values do.