Property Valuation (alternative)
In Maryland, the principle of 'balance' in appraisal theory states that:
AAll three approaches to value should receive equal weight
BThe four agents of production (labor, capital, coordination, land) must be in optimal balance for maximum value✓ Correct
CAssessments should balance between commercial and residential properties
DThe appraiser must balance the interests of all parties
Explanation
The principle of balance states that maximum value is achieved when the four agents of production (land, labor, capital, and entrepreneurial coordination) are in proper balance — over- or under-use of any agent reduces value.
Related Maryland Property Valuation (alternative) Questions
- Under USPAP, a Maryland appraiser who is asked to provide a specific predetermined value by the lender must:
- External (economic) obsolescence in a Maryland property appraisal is:
- In Maryland, a 'mass appraisal' conducted by SDAT differs from an individual property appraisal because:
- Functional obsolescence in a Maryland home appraisal refers to:
- Maryland appraisers are required by USPAP to disclose when:
- When comparing sales in the same Maryland neighborhood, an appraiser should give the most weight to comparables that are:
- A Maryland appraiser preparing a residential appraisal for a federally regulated transaction must complete a report on a form approved by:
- In Maryland appraisal practice, the 'date of value' is significant because:
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