Property Valuation
In Maine, an appraiser discovers that a property is in a flood zone and flood insurance is required. This would affect value because:
AFlood insurance is a benefit, increasing value
BThe mandatory flood insurance premium is an additional ongoing cost, potentially reducing value✓ Correct
CProperties in flood zones always appreciate faster
DIt does not affect value at all
Explanation
Being in a Special Flood Hazard Area typically reduces value because buyers must purchase mandatory flood insurance (an ongoing cost), face development restrictions, and may have difficulty obtaining conventional financing.
Related Maine Property Valuation Questions
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