Property Valuation
In New Mexico appraisal practice, the 'reconciliation' process requires the appraiser to:
AAverage the three approach values mathematically
BUse judgment to weigh the approaches and arrive at a final opinion of value✓ Correct
CAlways rely on the income approach
DSelect the approach supported by the most comparable sales
Explanation
Reconciliation is a judgment process—not averaging—where the appraiser evaluates the reliability and applicability of each approach given the property type, data quality, and purpose of the appraisal.
Related New Mexico Property Valuation Questions
- In New Mexico, what is the primary purpose of a property appraisal performed for a mortgage lender?
- In New Mexico, when an appraiser reconciles three approaches to value and gives the most weight to the sales comparison approach for a single-family home, it is because:
- In New Mexico, when there are very few recent comparable sales (e.g., in a remote rural area), an appraiser might place more weight on the:
- An apartment building has an NOI of $60,000 and a cap rate of 8%. What is the estimated value?
- Which type of depreciation is considered incurable because the cost to fix it exceeds the value it would add?
- In New Mexico, the 'income capitalization approach' is most appropriate for valuing:
- In New Mexico, which factor would most likely INCREASE the cap rate (and therefore DECREASE the property value) for an income property?
- In New Mexico, the 'band of investment' technique is used to derive a capitalization rate by:
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