Property Valuation
The principle of balance in South Dakota real estate appraisal states that:
AAll comparable sales must be within 1 mile of the subject property
BValue is maximized when the factors of production (land, labor, capital, management) are in proper proportion✓ Correct
CBuyer and seller must be equally motivated for a valid market transaction
DAll improvements must be consistent with the neighborhood
Explanation
The principle of balance states that maximum value is achieved when the economic agents of production (land, labor, capital, management) are in proper balance. Over-improvement or under-improvement reduces value.
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