Property Valuation
In North Dakota, 'functional obsolescence' in a residential property might be caused by:
AThe property's location near a busy highway
BAn outdated floor plan with bedroom access only through another bedroom✓ Correct
CNormal wear and tear on the roof
DDeclining neighborhood property values
Explanation
Functional obsolescence results from deficiencies or superadequacies in the property itself, not external factors. A floor plan that requires passing through one bedroom to access another is functionally obsolete because it doesn't meet modern expectations for privacy and layout.
Related North Dakota Property Valuation Questions
- In North Dakota, the 'comparable sales grid' used in the sales comparison approach requires an appraiser to make adjustments for differences between the subject property and each comparable. Adjustments are made to:
- A North Dakota appraiser performing a 'restricted appraisal report' provides:
- What is 'value in use' as distinguished from 'market value' in North Dakota appraisal?
- In North Dakota, which of the following BEST illustrates 'external (economic) obsolescence'?
- What does 'as-is' value mean in a North Dakota appraisal?
- In North Dakota, when two appraisers independently value the same property and arrive at different conclusions, this is:
- A North Dakota appraiser reconciles three approaches to value at $310,000, $325,000, and $315,000. The appraiser assigns the most weight to the sales comparison approach and concludes $315,000. This process is called:
- 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?
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