Property Valuation
What is the 'principle of balance' in Delaware real estate value theory?
AThe requirement that all appraisals balance between the three approaches to value
BThe idea that maximum value is achieved when the four agents of production (land, labor, capital, coordination) are in proper balance✓ Correct
CThe principle that buyers and sellers should have equal information
DThe requirement that comparable sales be balanced between buyer's and seller's markets
Explanation
The principle of balance holds that maximum value is achieved when the factors of production — land, labor, capital, and entrepreneurship — are in proper proportion. Over- or under-improvement (relative to the surrounding neighborhood) reduces value.
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