Property Valuation
In South Dakota, an 'automated valuation model' (AVM) is best described as:
AAn appraisal performed by the SDREC electronically
BA computer-generated property value estimate using statistical models and public data✓ Correct
CAn appraisal conducted via video call by a licensed appraiser
DA valuation method used only for agricultural land
Explanation
AVMs (like Zillow's Zestimate) use algorithms, public records, and market data to generate automated property value estimates. They are not appraisals and cannot substitute for licensed appraisals in lending.
Related South Dakota Property Valuation Questions
- In South Dakota, which of the following is NOT a characteristic of a good comparable sale used in the sales comparison approach?
- Which appraisal principle states that the value of a property is affected by the values of surrounding properties?
- In the cost approach to value, 'functional obsolescence' in a South Dakota property refers to:
- Which of the following BEST describes 'scarcity' as a factor affecting property value in South Dakota?
- An appraiser in South Dakota is valuing a property using the income approach. If the property's effective gross income is $60,000 and operating expenses are $25,000, what is the NOI?
- The principle of balance in South Dakota real estate appraisal states that:
- A South Dakota appraiser is using the cost approach and finds the total replacement cost new is $400,000, with $80,000 in total depreciation. The land value is $60,000. What is the estimated value?
- In a South Dakota appraisal, 'economic obsolescence' (external obsolescence) is caused by:
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