Property Valuation
In Michigan, 'value in use' differs from 'market value' because it:
AIs always higher than market value
BReflects the property's value for a specific use to a specific user, which may differ from what the open market would pay✓ Correct
CIs set by the property tax assessor
DOnly applies to industrial properties
Explanation
Value in use is the value of a property for a particular use to a specific owner or user, which may differ from market value. For example, a specialized factory may have high value in use to the current operator but lower market value to other buyers who cannot use the space as efficiently.
Related Michigan Property Valuation Questions
- The income approach to property valuation in Michigan is most commonly used for:
- In Michigan, a property's 'true cash value' as used for assessment purposes is best described as:
- Highest and best use in appraisal is the use that is:
- The sales comparison approach to value is based on the principle of:
- The reproduction cost of a Michigan building refers to the cost to build:
- In Michigan, 'market conditions adjustments' in a sales comparison appraisal account for:
- In Michigan, an appraiser who discovers evidence of an illegal activity on the property during an inspection should:
- In Michigan, the principle of 'progression' in real estate means:
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