Property Valuation
In Nebraska farmland valuation, which factor has the greatest impact on per-acre value?
AThe color of the farmhouse paint
BSoil productivity ratings and irrigation access✓ Correct
CDistance to the nearest interstate highway
DThe age of existing farm equipment
Explanation
Nebraska farmland values are heavily influenced by soil productivity ratings (CSR2 scores in Iowa; PI ratings in Nebraska) and access to irrigation, especially in western Nebraska's Platte River valley.
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Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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