Property Valuation
In South Carolina, what is 'fractional interest discount' in appraisal?
AA discount applied to very small properties
BA reduction in value when appraising a partial ownership interest (e.g., a 50% tenancy in common interest), reflecting the reduced control and marketability✓ Correct
CA discount for paying cash instead of financing
DA reduction in appraisal fees for repeat clients
Explanation
A fractional interest discount is applied when appraising a partial ownership interest (tenancy in common share, partnership interest) to reflect the lack of control and reduced marketability compared to 100% ownership. Such interests typically sell at a discount to their pro-rata share of whole property value.
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