Property Valuation
What is 'balance' as an appraisal principle in Rhode Island?
AKeeping the appraisal report balanced and unbiased
BThe principle that maximum value results when the elements of production (land, labor, capital, coordination) are in proper balance✓ Correct
CHaving an equal number of comparable sales for each approach
DBalancing the interests of buyer and seller
Explanation
The appraisal principle of balance states that maximum value is achieved when the four agents of production (land, labor, capital, and entrepreneurship/coordination) are optimally balanced for the property's use.
People Also Study
Related Rhode Island Questions
- The principle of contribution in Rhode Island appraisal holds that the value of a component is measured by:Property Valuation
- What is a 'market value' opinion in a Rhode Island appraisal?Property Valuation
- What does 'land residual technique' mean in Rhode Island real estate appraisal?Property Valuation
- In Rhode Island, an appraiser values a single-family home using the cost approach. After estimating the land value at $80,000 and the depreciated cost of improvements at $220,000, what is the indicated value?Property Valuation
- Rhode Island's comprehensive planning law requires municipalities to adopt land use plans that are consistent with state goals. This requirement reflects the principle of:Land Use & Zoning
- Which government power allows a municipality in Rhode Island to regulate land use through zoning ordinances?Property Ownership
- In Rhode Island, recording a deed in the land records serves to provide:Escrow & Title
- A Rhode Island property has an assessed value of $195,000. The property tax rate is $14.20 per $1,000 of assessed value. What is the annual property tax?Real Estate Math
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
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.
Study This Topic
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →