Property Valuation
In Louisiana, which of the following is a characteristic of 'value in use' as opposed to 'market value'?
AValue in use is always higher than market value
BValue in use is the value of a property to a specific user based on their particular use — it may differ significantly from market value which reflects the general market✓ Correct
CValue in use is always lower than market value
DValue in use is the assessed value for tax purposes
Explanation
Value in use reflects the value of a property for a specific user's particular purpose (e.g., a factory's value to the company that uses it in production). This may be higher or lower than market value, which reflects the value to typical market participants.
Related Louisiana Property Valuation Questions
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- An appraiser in Louisiana determines a residential comparable sale has 200 more square feet of living area than the subject. If the appraiser uses $50 per square foot for size adjustments, the adjustment to the comparable is:
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- In Louisiana, the 'market conditions adjustment' in an appraisal's sales comparison approach accounts for:
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- In Louisiana, what is the significance of a property's 'elevation certificate' to its value?
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