Property Valuation
In New Mexico, what is the primary purpose of a property appraisal performed for a mortgage lender?
ATo determine the property tax assessment
BTo establish the market value as collateral security for the loan✓ Correct
CTo provide the seller with a listing price
DTo identify environmental hazards
Explanation
Lenders order appraisals to establish the property's market value as collateral for the mortgage loan. The appraisal protects the lender by ensuring the loan amount does not exceed the collateral's value.
Related New Mexico Property Valuation Questions
- In New Mexico, 'neighborhood analysis' in an appraisal helps the appraiser:
- The income approach to value is most often used for:
- In New Mexico, a 'prospective market value' appraisal estimates value:
- Depreciation in the cost approach to value is described as:
- When appraising income property in New Mexico, 'economic rent' refers to:
- In New Mexico, what is a 'desktop appraisal'?
- In New Mexico, 'physical deterioration' that is 'incurable' refers to:
- Functional obsolescence in appraisal refers to:
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