Property Valuation
An appraiser in New Jersey notes that a property is being sold under extreme financial distress (bank sale). This would affect which appraisal concept?
ACap rate selection
BWhether the transaction represents 'arms-length' market value✓ Correct
CPhysical depreciation calculation
DHighest and best use analysis
Explanation
A distress sale may not represent fair market value because the seller is not acting in their best interest. Appraisers must determine whether a comparable sale was an arm's-length transaction before using it.
Related New Jersey Property Valuation Questions
- In NJ, a 'floor area ratio' (FAR) is a zoning measure that regulates:
- The principle of substitution, which underlies all three approaches to value, states that:
- Gross Rent Multiplier (GRM) is calculated as:
- In a NJ appraisal, 'market value' is most accurately defined as:
- In NJ, an appraiser using the cost approach to value a historic home would use which reproduction cost method?
- An NJ appraiser concludes a value of $425,000 for a home but the client asks the appraiser to 'hit' the contract price of $450,000. The appraiser should:
- Economic (external) obsolescence differs from functional obsolescence because it is:
- An appraisal for a NJ estate (tax purposes) typically uses which standard of value?
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →