Property Valuation (alternative)
When appraising Maryland waterfront property, the premium over a non-waterfront comparable is:
AA flat $50,000 in all markets
BDerived from paired sales analysis comparing waterfront vs. non-waterfront sales✓ Correct
CSet by SDAT tables
DNot considered in appraisals
Explanation
Waterfront premiums are market-specific and derived by comparing similar properties with and without waterfront access (paired sales analysis) to quantify the market's valuation of waterfront location.
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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.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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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