Property Valuation
In New Mexico, which of the following best describes the 'principle of balance' in appraisal?
AEqual land and building values
BValue is maximized when land use components are in proper proportion to each other and to the neighborhood✓ Correct
CAll improvements should have equal value
DThe market should be balanced between buyers and sellers
Explanation
The principle of balance holds that real estate values are maximized when all factors of production (land, labor, capital, coordination) are in equilibrium and improvements are proportional to their site and neighborhood.
Related New Mexico Property Valuation Questions
- A comparable sale sold for $250,000 and has a feature the subject property lacks. The appraiser adjusts the comparable by -$5,000. This means:
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