Property Valuation

An appraiser in Biloxi, Mississippi notes that a subject property is adjacent to the Gulf Coast casino corridor. The presence of casinos in the area would most likely be reflected as:

AA negative adjustment due to traffic and noise
BA positive or negative locational factor depending on buyer preferences and market data — the appraiser must look to market evidence of how proximity to casinos affects residential value✓ Correct
CNo adjustment since casinos are not real property
DAlways a positive factor due to employment proximity

Explanation

The impact of nearby casinos on residential property value varies by market, property type, and buyer segment. The appraiser must analyze market evidence (paired sales, interviews with market participants) to determine whether casino proximity is a positive (employment, entertainment) or negative (traffic, noise) value factor for the specific subject.

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