Property Valuation
In Michigan, property value is most directly affected by all of the following EXCEPT:
ALocation and neighborhood characteristics
BPhysical condition of the property
CThe original cost of construction✓ Correct
DCurrent supply and demand in the market
Explanation
Value is determined by the market (supply and demand), location, and current condition—not by what the property originally cost to build. The original construction cost is a 'sunk cost' that may have little relationship to current market value.
Related Michigan Property Valuation Questions
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