Property Valuation
The 'four forces' that influence real estate value in Mississippi are:
ASize, age, condition, and location
BSocial, economic, governmental, and environmental factors✓ Correct
CSupply, demand, interest rates, and inflation
DPopulation, employment, income, and housing stock
Explanation
The four major forces influencing real estate value are: (1) social forces (demographics, lifestyle preferences), (2) economic forces (employment, interest rates, income levels), (3) governmental forces (taxation, zoning, regulation), and (4) environmental forces (location, natural features, climate).
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Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Math Concepts
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