Property Valuation
What is 'tourism premium' in Hawaii property valuation and how do appraisers account for it?
AA. A discount applied to properties near tourist areas due to noise and congestion
BB. The additional value properties in tourism-dependent areas command due to short-term rental income potential, resort amenities access, and high demand from vacation buyers—reflected in comparable sales from similar resort markets✓ Correct
CC. A government-imposed premium fee for developing resort properties
DD. A valuation adjustment only applicable to hotels and commercial resort properties
Explanation
Properties in Hawaii's resort areas (Kaanapali, Poipu, Waikiki adjacency, Kohala Coast) command premiums over comparable properties in non-resort areas, partly because of short-term rental potential, resort amenity access, and high demand from vacation-second home buyers. Appraisers select comparables from similar resort market areas to capture these premiums rather than comparing resort properties to suburban residential sales.
Related Hawaii Property Valuation Questions
- In Hawaii, an appraiser must be licensed or certified to prepare an appraisal for use in a:
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- Functional obsolescence as a form of depreciation might be best illustrated by:
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