Property Valuation
The principle of balance in Kentucky property valuation holds that:
AThe appraiser must balance income and cost approaches
BThe optimum combination of land uses produces maximum value✓ Correct
CAll properties in a neighborhood must be equal in value
DThe lender's and buyer's opinions of value must be balanced
Explanation
The principle of balance holds that property achieves maximum value when all factors of production (land, labor, capital, coordination) are in balance within the property and its neighborhood.
Related Kentucky Property Valuation Questions
- In Kentucky, when appraising a historic property in Bardstown, the appraiser may consider the value contribution of:
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