Property Valuation
An appraiser in North Dakota evaluating a large wheat farm would most likely use which primary approach?
ACost approach
BSales comparison approach using comparable farm sales on a per-acre basis✓ Correct
CIncome approach using retail crop prices
DAssessed value approach
Explanation
For agricultural land, the sales comparison approach comparing recent sales of similar farms (by soil class, location, improvements) on a per-acre basis is typically the primary approach. The income approach using crop income can support the value, but comparable sales are the primary indicator.
Related North Dakota Property Valuation Questions
- Which North Dakota principle states that value is influenced by the returns expected from surrounding properties?
- A North Dakota appraiser is making adjustments to comparable sales. If a comparable home sold for $250,000 but has an extra bathroom that the subject property lacks, the appraiser would:
- Reconciliation in the appraisal process involves:
- Which type of depreciation is ALWAYS incurable?
- In North Dakota, which of the following is NOT a standard method of depreciation recognized in the cost approach to appraisal?
- What is 'value in use' as distinguished from 'market value' in North Dakota appraisal?
- In North Dakota, which appraiser certification level is required to appraise a non-residential property with a transaction value over $500,000 for federally related transactions?
- Which principle of value states that a property's maximum value is limited by the cost of acquiring an equally desirable substitute?
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