Property Valuation
In New Mexico, a 'prospective market value' appraisal estimates value:
AAs of the current date
BAs of a future date, reflecting anticipated completion of planned improvements or future market conditions✓ Correct
CRetroactively for tax appeal purposes
DFor insurance replacement cost only
Explanation
A prospective value estimate is as of a future date — used for construction loans (as-completed value), pre-sales of condos, or development projects. The appraiser projects market conditions and completed improvements to a specified future effective date.
Related New Mexico Property Valuation Questions
- An appraiser in New Mexico who discovers that the subject property has a legal nonconforming use should:
- In New Mexico, what does an appraiser mean by 'scope of work' in their appraisal engagement?
- In New Mexico, the 'principle of conformity' holds that:
- An apartment building has an NOI of $60,000 and a cap rate of 8%. What is the estimated value?
- In the cost approach to value, the appraiser estimates:
- The cost approach to value is most reliable for:
- Market value in New Mexico appraisal is defined as:
- External obsolescence that reduces a New Mexico property's value would be exemplified by:
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →