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.

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