Property Valuation
An Oklahoma appraiser performing a market analysis finds that homes with swimming pools in a particular neighborhood sell for only $10,000 more than comparable homes without pools, even though pools cost $40,000 to install. This demonstrates:
AThat pools are always a bad investment
BThe principle of contribution — the pool contributes only $10,000 in market value even though it costs $40,000; the excess cost represents a form of superadequacy✓ Correct
CThat the appraiser made an error
DThat pools are always a good investment in Oklahoma
Explanation
The principle of contribution shows that a feature's value is determined by how much it adds to market value, not by its cost. A $40,000 pool adding only $10,000 in value reflects a superadequacy — an improvement that costs more than it contributes to value.
Related Oklahoma Property Valuation Questions
- In Oklahoma oil country, mineral rights can significantly affect property value. A property with an active oil and gas lease producing royalty income would be valued:
- An Oklahoma appraiser is asked to estimate market value. Market value is defined as:
- Oklahoma industrial properties have unique appraisal considerations because:
- Functional obsolescence in an Oklahoma property refers to:
- Capitalization rate (cap rate) is calculated as:
- When using the sales comparison approach, an appraiser finds a comparable that sold for $300,000. The comparable has a 2-car garage worth $10,000 but the subject property does not. The appraiser should:
- When appraising a luxury home in the Nichols Hills area of Oklahoma City, the appraiser would use comparable sales from:
- In Oklahoma, the county assessor determines the assessed value of property for ad valorem tax purposes. Residential property is assessed at:
Practice More Oklahoma Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oklahoma Quiz →