Minnesota Appraisal Trainee Practice Exam 2025 – Complete Preparation Guide

C is the correct choice because the assessed value of a property is typically determined by a licensed appraiser who evaluates the property based on various factors, including comparable sales, property condition, and market trends. Licensed appraisers use standardized methodologies to ensure that the property’s assessed value reflects its true market value, which can be crucial for taxation and financing purposes.

In contrast, the final sale price of the property is a reflection of what a buyer is willing to pay at a specific moment in time and can be influenced by market conditions, negotiation skills, and buyer perceptions. An estimate of a property's rental income potential focuses on investment potential rather than the inherent value of the property itself. The owner's reported purchase price may not accurately reflect the market value or assessed value, especially if influenced by personal circumstances or motivations during the transaction. Thus, the licensed appraiser's valuation provides a more objective and reliable indicator of assessed value in real estate transactions.