Property Valuation
In New Mexico, the market value of a property may differ significantly from its assessed value because:
AThey are always different by 10%
BAssessed value is set at one-third of market value by statute for property tax purposes✓ Correct
CMarket value changes daily while assessed value is fixed permanently
DThe NMREC sets market value separately from the county assessor
Explanation
New Mexico law sets residential assessed value at one-third of market value. A home worth $300,000 has an assessed value of approximately $100,000, which is the base for property tax calculations.
Related New Mexico Property Valuation Questions
- Which approach to value is most commonly used to appraise a single-family residence in Albuquerque?
- In the income approach, 'effective gross income' is calculated as:
- An appraiser in New Mexico is reconciling value indications: Cost Approach = $320,000; Sales Comparison = $315,000; Income Approach = $310,000. For a single-family residence in Albuquerque, the appraiser will most likely give greatest weight to:
- In New Mexico, 'economic obsolescence' (also called external obsolescence) is caused by:
- In New Mexico, an appraiser's 'extraordinary assumption' is:
- In New Mexico, which principle states that the maximum value of a property is determined by what a buyer could pay for a similar substitute property?
- In New Mexico, a property's 'economic life' refers to:
- In New Mexico, 'mass appraisal' is used primarily for:
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 →