Property Valuation
When appraising an Oregon waterfront property on the Willamette River, an appraiser would most likely apply which value adjustment?
AA negative adjustment for proximity to water
BA positive adjustment for riparian water rights and view✓ Correct
CNo adjustment since water frontage is standard in Oregon
DA negative adjustment for flood zone risk only
Explanation
Oregon waterfront properties typically command significant premiums due to riparian water rights, recreational value, views, and limited supply. An appraiser would apply positive adjustments for water frontage and associated rights when comparing to non-waterfront comparable sales, while separately noting any flood zone risk.
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Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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