USPAP defines which term as the amount asked, offered, or paid for a property?

USPAP defines which term as the amount asked, offered, or paid for a property?

• A. value
• B. price
• C. cost
• D. equity

Answer: (B)

Understanding what USPAP means by price focuses on the actual money involved in a sale. Price is the amount asked, offered, or paid for a property—the dollar figure that changes hands in the transaction. This distinguishes it from value, which is an opinion of what the property is worth in the market, and from cost, which is the amount needed to acquire or produce the property. Equity is the owner’s interest in the property, calculated as value minus any debts attached to it. So the term defined as the amount asked, offered, or paid is price.

Understanding what USPAP means by price focuses on the actual money involved in a sale. Price is the amount asked, offered, or paid for a property—the dollar figure that changes hands in the transaction. This distinguishes it from value, which is an opinion of what the property is worth in the market, and from cost, which is the amount needed to acquire or produce the property. Equity is the owner’s interest in the property, calculated as value minus any debts attached to it. So the term defined as the amount asked, offered, or paid is price.