Property Valuation
Transferable development rights (TDRs) affect property valuation because they:
AHave no economic value
BRepresent a separable and marketable right that can add or reduce value depending on the property's zoning✓ Correct
CAre only relevant for government-owned land
DApply only to historic properties
Explanation
TDRs have economic value because unused development rights on restricted land can be sold to owners who can use them to increase density elsewhere. A property's development rights (or lack thereof) affect its market value.
Related Arkansas Property Valuation Questions
- A property generates a net operating income of $30,000 per year. Using a capitalization rate of 6%, what is the indicated value?
- A property has replacement cost new of $200,000, depreciation of $40,000, and land value of $50,000. What is the appraised value under the cost approach?
- The principle of progression in real estate valuation states that:
- Capitalization rate (cap rate) is defined as:
- When a comparable sale was a foreclosure or distressed sale, the appraiser should:
- When using the sales comparison approach, a 'gross living area' adjustment is made because:
- The sales comparison approach to value is most appropriate for:
- Physical depreciation that cannot be economically repaired is classified as:
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