Property Valuation
In NJ, the 'land residual technique' in the income approach to value is used primarily to:
AValue farmland
BEstimate land value by capitalizing the income attributable to the land after deducting the return attributable to the improvements✓ Correct
CDetermine the cost to remediate contaminated land
DEstimate the value of air rights
Explanation
The land residual technique estimates the income attributable to the land by deducting from the property's total NOI the portion attributable to the improvements (building return), then capitalizing the remaining residual income to arrive at land value.
Related New Jersey Property Valuation Questions
- In NJ, the 'bracketing' technique in the sales comparison approach means:
- In NJ's Jersey City market (Hudson County), proximity to which of the following primarily drives premium property values?
- A New Jersey appraiser performing a URAR (Uniform Residential Appraisal Report) is using which appraisal approach as the primary method for a single-family home?
- When an appraiser in NJ analyzes a neighborhood for a residential appraisal, they must NOT consider which of the following factors?
- In NJ, an appraiser using the cost approach to value a historic home would use which reproduction cost method?
- An NJ appraiser determines that a property's highest and best use is as a multi-family residential property rather than its current use as a single-family home. The appraiser should value the property:
- In New Jersey's active suburban real estate market, which valuation approach is most commonly used for single-family residential appraisals?
- Regression in real estate appraisal means:
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 →