Property Valuation
A New Mexico property manager wants to estimate the market rent for a vacant unit. The best approach is to:
AUse the owner's desired rent
BSurvey comparable rentals in the same area with similar features✓ Correct
CApply the last tenant's rate plus 10%
DUse a national average rent index
Explanation
Estimating market rent requires a rental market analysis: surveying comparable properties (comps) with similar size, features, condition, and location to determine what the market will bear for the subject unit.
Related New Mexico Property Valuation Questions
- In New Mexico, which of the following would be considered a 'super-adequate' feature that may contribute to functional obsolescence?
- In New Mexico, 'market conditions adjustments' in an appraisal are made to comparable sales to account for:
- Regression in real estate valuation means:
- In the cost approach to value, the appraiser estimates:
- Highest and best use is defined as the use that is:
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- The principle of substitution states that:
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