Property Valuation
A Mississippi appraiser values a gas station and convenience store. The business value (goodwill, inventory, brand) must be:
AIncluded in the real estate value since it is attached to the land
BSeparated from the real property value — appraisals of real property must exclude business enterprise value✓ Correct
CIncluded only if the business is profitable
DAveraged with the land value
Explanation
Real estate appraisals value only the real property (land and improvements), not business enterprise value (goodwill, trade fixtures, going-concern value, brand). When appraising income-generating properties like gas stations, the appraiser must separate business value from real property value.
Related Mississippi Property Valuation Questions
- A Mississippi appraiser is conducting an appraisal and finds that the subject property's neighborhood is transitioning from residential to commercial use. This factor would most affect which approach to value?
- The 'four forces' that influence real estate value in Mississippi are:
- A Mississippi appraiser determines that a comparable sale occurred nine months ago and the market has since appreciated 3%. The time adjustment would be a:
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- A Mississippi appraiser discovers that a recent comparable sale was a 'related-party transaction' (between family members). This sale should be:
- A Mississippi appraiser completes an appraisal and 'reconciles' the three approaches to value. Reconciliation means:
- When a Mississippi appraiser notes that the subject property's neighborhood is 'stable,' this means:
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