Property Valuation
When NC appraisers analyze a residential subdivision lot's value, which method do they typically use?
AIncome capitalization
BLand residual technique or sales comparison using comparable lot sales✓ Correct
CCost approach based on the building permit value
DGross rent multiplier
Explanation
Vacant land (including subdivision lots) is typically valued using the sales comparison approach — comparing recent sales of similar lots — or land residual techniques for income-producing land.
Related North Carolina Property Valuation Questions
- When a NC appraiser uses a market extraction method to determine a capitalization rate, they analyze:
- When adjusting comparables in the sales comparison approach, the appraiser adjusts the comparable, not the subject. If a comp has a superior feature, the adjustment is:
- The 'highest and best use' of a property in NC appraisal practice is defined as the use that is:
- In the sales comparison approach, a positive adjustment to a comparable sale means:
- The 'gross income multiplier' (GIM) using annual income for an NC commercial property is calculated as:
- Highest and best use in appraisal is defined as the use that is:
- What is the principle of substitution in real estate?
- An appraiser in NC who estimates the value of a proposed new development building uses which approach as the primary method?
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