Property Valuation
The principle of 'increasing returns' in Mississippi real estate suggests that:
AAdding more improvements always increases value
BUp to a certain point, adding more of a production factor increases value; beyond that point, returns decrease✓ Correct
CReal estate values always increase over time
DLarger properties always yield higher returns
Explanation
The principle of increasing and decreasing returns recognizes that adding improvements or capital yields increasing returns up to the point of maximum value (balance), after which additional investment results in decreasing returns.
Related Mississippi Property Valuation Questions
- A Mississippi appraiser determines the cost to construct a new building is $180 per square foot. The building has 2,000 square feet. Depreciation is estimated at 20%. The depreciated improvement value is:
- Which of the following best describes the difference between 'price' and 'value' in Mississippi real estate?
- Which of the following best describes 'economic rent' in Mississippi appraisal?
- A Mississippi appraiser is asked to provide an 'as-improved' value of a proposed mixed-use development that does not yet exist. This assignment requires the appraiser to use:
- Which of the following does NOT affect the market value of a Mississippi residential property?
- A Mississippi appraiser's 'scope of work' for a standard residential appraisal assignment includes all of the following EXCEPT:
- A special-purpose property in Mississippi (e.g., a church or school) is most often appraised using the:
- In the cost approach to appraisal, effective age refers to:
Practice More Mississippi Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Mississippi Quiz →