Property Valuation
In New Mexico, an appraiser who determines the value of a property 'as completed' for a proposed new home construction is providing a:
ARetrospective appraisal
BProspective value opinion subject to completion✓ Correct
CCurrent as-is value
DLiquidation value
Explanation
A prospective value opinion 'subject to completion' values the property assuming specified improvements are completed per plans. Lenders use this for construction loans to ensure the completed property will support the loan amount.
Related New Mexico Property Valuation Questions
- Which principle of appraisal states that value is created by the expectation of future benefits?
- In the cost approach, 'functional obsolescence' refers to:
- Regression in real estate valuation means:
- The income approach to value is most appropriate for which type of New Mexico property?
- The highest and best use of a New Mexico property is defined as the use that is:
- In New Mexico, which of the following would be an example of functional obsolescence that is 'curable'?
- Which approach to value is most commonly used to appraise a single-family residence in Albuquerque?
- A capitalization rate (cap rate) is used to:
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