Property Valuation
An appraiser in North Dakota performing a 'highest and best use' analysis must consider four criteria. Which of the following is NOT one of them?
ALegally permissible
BPhysically possible
CFinancially feasible
DCurrently occupied✓ Correct
Explanation
The four tests for highest and best use are: (1) legally permissible (what zoning allows), (2) physically possible (what the site can accommodate), (3) financially feasible (what uses generate positive returns), and (4) maximally productive (which use yields the highest value). Current occupancy is not one of the four criteria.
Related North Dakota Property Valuation Questions
- A North Dakota appraiser developing a 'restricted appraisal report' is providing:
- An appraiser values a Bismarck, ND apartment building by dividing its annual gross rental income by its sale price to determine the:
- Market value is best defined as:
- The sales comparison approach to value requires the appraiser to:
- An appraiser performing a retrospective appraisal for estate tax purposes in North Dakota must value the property:
- The 'principle of regression' in North Dakota real estate appraisal states that:
- In North Dakota, the 'principle of conformity' suggests that:
- The principle of substitution states that a buyer will pay no more for a property than the cost of:
Practice More North Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Dakota Quiz →