Property Valuation
An appraiser preparing a value estimate for a NH historic home in Portsmouth finds few recent comparable sales. The appraiser might also rely on the:
AAssessed value as the primary indicator of market value
BCost approach to supplement the sales comparison approach✓ Correct
CAutomated valuation model (AVM) as the primary tool
DNational average price per square foot
Explanation
When comparable sales are limited (as with historic or unique properties), the cost approach can provide a useful cross-check on the sales comparison value. The appraiser estimates the land value plus the depreciated cost of improvements, helping to support or test the sales comparison conclusion.
Related New Hampshire Property Valuation Questions
- When appraising a New Hampshire property, the appraiser must consider whether the property's current use is the highest and best use. If not, the appraiser must:
- An NH appraiser who is reviewing an older appraisal to determine if it is still valid should consider:
- A NH appraiser notes that a property's neighborhood has transitioned from single-family to increasingly mixed residential/commercial uses. This is evidence of:
- An appraiser in Nashua, NH determines that the highest and best use of a commercial corner lot is a mixed retail/residential development rather than single-family residential. This conclusion:
- The 'principle of balance' in NH real estate appraisal states that:
- A NH appraiser who uses the cost approach for a 50-year-old warehouse estimates depreciation using:
- A NH appraiser's certification that the report was prepared in compliance with USPAP is part of their obligation under:
- In the income approach to valuation, 'effective gross income' is calculated by:
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