Property Valuation
In North Dakota, the 'principle of balance' in appraisal states that:
AAll properties should have equal value in a neighborhood
BMaximum value is achieved when the elements of production (land, labor, capital, coordination) are in proper balance for a property use✓ Correct
CMortgage balances should equal property values
DIncome and expenses should always be in balance
Explanation
The principle of balance holds that value is created and maintained when the agents of production (land, labor, capital, and entrepreneurial coordination) are in proper proportion to each other for a given property use.
Related North Dakota Property Valuation Questions
- An appraiser in North Dakota determines the 'replacement cost new' of a building. This is the cost to build a:
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- An appraiser preparing a complete appraisal in North Dakota must follow USPAP Standard 1. This standard covers:
- Which appraisal approach uses the formula: Value = Land Value + (Replacement Cost New - Depreciation)?
- In North Dakota, which of the following is NOT a standard method of depreciation recognized in the cost approach to appraisal?
- A North Dakota property appraiser's opinion differs from the purchase price by 15%. The appraiser should:
- Which appraisal principle states that the value of a property is affected by the values of surrounding properties?
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