Property Valuation
When comparing sales in Rhode Island's Newport market, an appraiser finds a waterfront home sold for significantly more than non-waterfront homes. This premium is captured through:
AFunctional obsolescence
BLocation adjustment✓ Correct
CPlottage value
DSuperadequacy
Explanation
The waterfront premium is captured through a location adjustment in the sales comparison approach. The appraiser adds or subtracts value to account for differences in location between comparable sales and the subject property.
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