Property Valuation
In New Mexico, the distinction between 'value in use' and 'market value' is important because:
AThey are always the same
BValue in use reflects the subjective worth to a specific user, while market value reflects what the open market would pay✓ Correct
CValue in use is always higher
DMarket value is used only for tax purposes
Explanation
Value in use is the subjective value to a particular user for a specific use—it may exceed or fall below market value. Market value is an objective, market-derived standard used in most appraisals.
Related New Mexico Property Valuation Questions
- The capitalization rate (cap rate) used in the income approach reflects:
- In the sales comparison approach, 'adjustments' are made to comparable properties to account for differences from the subject. If a comparable has a feature the subject lacks, the appraiser makes a:
- Depreciation in the cost approach to value is described as:
- In the cost approach to value, the appraiser estimates:
- An appraiser in Albuquerque applies a downward adjustment to a comparable sale because the comparable has a view of the Sandia Mountains but the subject property does not. This is because:
- The highest and best use of a New Mexico property is defined as the use that is:
- 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, property that has been 'condemned' by the government has been:
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