Property Valuation
In South Carolina, a 'sight value premium' for a waterfront property represents what type of value?
AAdditional value arising from physical deterioration
BAdditional value from a desirable view, location, or amenity reflected in market prices✓ Correct
CThe cost to install a view window
DThe assessed value premium for waterfront
Explanation
A view or amenity premium is the additional value buyers are willing to pay for a desirable location feature (waterfront, ocean view, mountain view). It is a location adjustment in the sales comparison approach.
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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.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Math Concepts
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