Property Valuation
In South Carolina, the 'principle of balance' in appraisal holds that:
AAll comparable sales must be balanced in weight
BMaximum value is achieved when all factors of production are in proper proportion✓ Correct
CThe three approaches should yield equal values
DBuyer and seller must be balanced in information
Explanation
The principle of balance holds that maximum property value is achieved when land, labor, capital, and management (factors of production) are in proper proportion. Imbalance causes either under- or over-improvement.
Related South Carolina Property Valuation Questions
- A South Carolina appraiser finds three comparable sales with adjusted prices of $248,000, $252,000, and $246,000. The final reconciled value estimate would most likely be:
- A Charleston, SC property with ocean views commands a premium over inland comparable properties. This premium reflects which appraisal adjustment?
- Which principle holds that a property's value is enhanced by its conformity to surrounding properties in a South Carolina neighborhood?
- In South Carolina, which factor is LEAST likely to influence the appraised value of a residential property?
- What is 'capitalization rate' (cap rate) used to measure in South Carolina real estate investment?
- A South Carolina property is overimproved relative to surrounding properties. This illustrates the principle of:
- Which of the following South Carolina properties would LEAST benefit from the income approach to value?
- In South Carolina, which factor would most likely cause a property to experience 'economic obsolescence'?
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