Property Valuation
The 'principle of balance' in NH real estate appraisal states that:
AThe appraisal must balance the three approaches equally
BValue is maximized when the elements of production (land, labor, capital, coordination) are in balance✓ Correct
CAll comparable sales must be within equal distance of the subject property
DThe appraiser's fee must balance the property's complexity
Explanation
The principle of balance holds that maximum value is achieved when land uses and the factors of production (land, labor, capital, management) are in proper proportion. An overbuilt or underbuilt property may not achieve its highest value.
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