Property Valuation
Vermont's 'bulk discount' principle in appraisal means that:
ALarge purchases always receive significant discounts
BWhen a large quantity of units is sold at once, the per-unit price may be discounted compared to individual retail sales✓ Correct
CBulk buying always increases value
DGovernment purchasers receive bulk discounts
Explanation
Bulk discount (exposure discount) applies when a large number of units (condominiums, lots) are sold as a portfolio — buyers expect a per-unit discount compared to selling each unit individually at retail prices.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
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