Environmental
Which of the following environmental conditions MOST directly reduces a property's market value in Alaska?
AA neighboring property with an attractive view of the mountains
BDocumented soil contamination from a decommissioned fuel tank✓ Correct
CProximity to a popular fishing stream
DA well-maintained road adjacent to the property
Explanation
Documented soil contamination is a severe negative environmental condition that directly reduces property value. The costs of remediation, restrictions on use, lender reluctance to finance contaminated property, and buyer concerns about liability all depress the market value of contaminated properties.
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Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Math Concepts
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