Property Valuation
The 'principle of balance' in real estate appraisal holds that:
AAll comparable sales must balance out to the same value
BMaximum value is achieved when the four agents of production (land, labor, capital, coordination) are in proper balance✓ Correct
CThe appraiser must balance all three approaches equally
DRental income must balance operating expenses
Explanation
The principle of balance states that real estate values are maximized when the four agents of production—land, labor, capital, and entrepreneurial coordination—are in proper proportion to each other.
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