Property Valuation
In Oklahoma, the principle of 'contribution' in real estate appraisal means:
AA property owner must contribute to neighborhood improvement funds
BThe value of a component of a property is measured by how much it contributes to the whole property's value, not necessarily its cost✓ Correct
CAppraisers must contribute their time to OREC
DLenders contribute to appraisal costs
Explanation
The principle of contribution states that the value of any property component (a garage, pool, or extra bedroom) is determined by how much value it adds to the whole property — not by how much it cost to install. A $50,000 pool may only add $20,000 in market value.
Related Oklahoma Property Valuation Questions
- An Oklahoma appraiser performing a retrospective appraisal for a date in the past must:
- 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:
- An Oklahoma appraiser valuing a property in a transitional neighborhood — one changing from industrial to residential — must address:
- In Oklahoma's residential market, comparable sales are typically chosen within what timeframe to best reflect current market conditions?
- In Oklahoma, an appraiser who accepts an assignment with a predetermined value (one that the client specifies must be reached) is:
- The discounted cash flow (DCF) analysis in Oklahoma commercial real estate appraisal:
- Regression is an appraisal principle that states:
- An Oklahoma appraiser must comply with USPAP's Competency Rule if they are asked to appraise a type of property they have not previously appraised. This means they must:
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