Property Valuation
Which appraisal principle states that value is influenced by the supply of and demand for similar properties?
AContribution
BBalance
CSupply and demand✓ Correct
DChange
Explanation
The principle of supply and demand holds that property values increase when demand exceeds supply and decrease when supply exceeds demand—a fundamental economic force in real estate markets.
Related Connecticut Property Valuation Questions
- The principle of substitution in real estate appraisal states that:
- A Connecticut appraiser uses 'paired sales analysis' to determine the value contribution of a garage. This technique involves:
- A Connecticut appraiser determines that a property has a remaining economic life of 35 years and a current effective age of 15 years. The total economic life estimate is:
- Which of the following increases the cap rate of an income property, all else being equal?
- An appraiser preparing a Connecticut home valuation uses the cost approach and finds: Land value = $100,000; Reproduction cost of improvements = $350,000; Total depreciation = 20%. What is the total property value?
- An appraiser in Connecticut reconciles value indications of $485,000 (sales comparison), $490,000 (cost), and $480,000 (income). The MOST weight is typically given to which approach for a single-family home?
- The difference between a property's 'chronological age' and 'effective age' reflects:
- A Connecticut commercial property's lease rate is significantly above or below market. When appraising for market value, the appraiser would:
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →