Property Valuation
When Iowa agricultural land is appraised, the appraiser must consider which factor unique to farmland?
AProximity to an airport
BSoil productivity ratings (CSR2)✓ Correct
CDistance to the nearest hospital
DLocal school district rankings
Explanation
Iowa farmland appraisals heavily rely on CSR2 soil ratings, drainage tile systems, crop history, tillable acres, and farm income potential—factors that are unique to agricultural land valuation.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
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