Property Valuation
Location, location, location—the most important factor in Utah residential real estate value—reflects which appraisal principle?
AContribution
BExternalities—value is affected by forces and factors outside the property itself✓ Correct
CConformity
DSubstitution
Explanation
The principle of externalities recognizes that outside forces—neighborhood quality, school districts, nearby amenities, economic trends—can have a major positive or negative impact on property value.
Related Utah Property Valuation Questions
- The principle of highest and best use in real estate valuation means:
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- Utah does NOT impose a state-level real estate transfer tax. This means:
- The principle of substitution in real estate appraisal states:
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- The principle of conformity in real estate appraisal suggests that value is maximized when:
- In the income approach to value, Net Operating Income (NOI) is calculated as:
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