Property Valuation
In Minnesota, which of the following factors would DECREASE a property's value relative to comparable homes?
ABeing located near a highly rated school district
BHaving a busy highway or commercial property immediately adjacent✓ Correct
CHaving a finished basement in an active market
DBeing located on a cul-de-sac in a quiet neighborhood
Explanation
External factors like a busy highway or adjacent commercial property typically decrease residential property values through noise, traffic, and incompatible land use (external obsolescence). Properties near high-rated schools, with desirable features (finished basements), and in quiet cul-de-sacs typically command premium prices in Minnesota markets.
Related Minnesota Property Valuation Questions
- The principle of substitution states that:
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- External obsolescence (economic obsolescence) is caused by:
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