Property Valuation
In Alaska, the 'principle of balance' in valuation refers to:
AEqual numbers of buyers and sellers in the market
BThe ideal combination of property components that produces maximum value✓ Correct
CThe balance between supply and demand in the market
DEqual treatment of all comparable properties
Explanation
The principle of balance (or equilibrium) states that maximum value is achieved when the four agents of production (land, labor, capital, and management/entrepreneurship) are in balance. Over-improving or under-improving relative to the highest and best use results in less than maximum value.
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