Property Valuation
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:
AThe sales comparison approach is always most reliable
BThere are sufficient arm's-length comparable sales in the market area making the approach most supported by market data✓ Correct
CLenders require it
DUSPAP mandates equal weighting
Explanation
The sales comparison approach is weighted most heavily for residential properties when there are ample recent, arm's-length sales. It directly reflects what buyers are paying in the market for similar homes.
Related New Mexico Property Valuation Questions
- An apartment building has an NOI of $60,000 and a cap rate of 8%. What is the estimated value?
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- In New Mexico, an appraiser is asked to estimate the 'value in use' of a specialty property (e.g., a church or school). This value differs from market value because:
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