Property Valuation
When valuing a Maine vacation cabin on a remote lake, an appraiser would consider which factor as MOST important?
AProximity to major highways
BWater frontage and lake access✓ Correct
CDistance to commercial shopping
DSchool district ratings
Explanation
For Maine lakefront vacation properties, water frontage, lake access, and water quality are typically the most important value factors, often adding significant premium to otherwise comparable inland properties.
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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.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
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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