The GATE Grind

GATE 2024 AR — Architecture – Question 14

Town Planning, Housing and Real Estate Development · Real estate valuation · 1 mark · Multiple choice

What is the value realised when a property must be sold below its open-market price?

  1. Distress value
  2. Accommodation value
  3. Speculative value
  4. Replacement value

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Show answer and explanation

Correct answer: (A) Distress value

Explanation

A constrained or urgent sale can realise a distress value below normal market value, A. Replacement value concerns obtaining an equivalent asset; speculative value reflects anticipated future gains. The question concerns the unfavourable sale circumstances.

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