Which factor would most likely cause a property's value to decrease in a market analysis?
Correct Answer
A) Designation of adjacent land as industrial zoning
Industrial zoning adjacent to residential property typically decreases property values due to potential noise, traffic, pollution, and aesthetic concerns. The other options generally enhance property values by improving amenities and accessibility.
Why This Is the Correct Answer
Industrial zoning adjacent to residential property creates negative externalities that decrease property values. Industrial uses typically generate noise pollution, increased heavy vehicle traffic, air quality concerns, and aesthetic impacts that make residential properties less desirable. This principle is recognized in Canadian appraisal standards and municipal planning legislation. The incompatible land use reduces the highest and best use potential of residential properties, directly impacting market value through decreased buyer demand and reduced comparable sales prices.
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