Property Valuation
When appraising a wheat farm in North Dakota, an appraiser would primarily use:
AThe sales comparison approach only
BThe cost approach only
CThe income approach, comparing it to similar agricultural properties✓ Correct
DThe assessed value from the county assessor
Explanation
For income-producing agricultural properties such as wheat farms, appraisers typically rely on the income approach (capitalization of agricultural income) as well as the sales comparison approach using comparable farm sales.
Related North Dakota Property Valuation Questions
- In North Dakota, what is the difference between 'list price' and 'sold price'?
- A North Dakota property with an irregular shape or limited access might be subject to which type of valuation adjustment?
- In North Dakota, an appraiser reviewing a commercial property's rent roll should determine:
- In North Dakota, appraisers must comply with the Uniform Standards of Professional Appraisal Practice (USPAP) because:
- An appraiser in North Dakota values a Fargo warehouse using the income approach. The building generates $180,000 NOI and comparable cap rates are 8%. The indicated value is:
- In North Dakota, the 'principle of balance' in appraisal states that:
- In North Dakota agricultural appraisals, soil productivity ratings are important because:
- A North Dakota apartment building's value by the income approach is $1,200,000 and by the sales comparison approach is $1,150,000. The appraiser should reconcile these figures by:
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 →