Property Valuation
In New Mexico, when appraising a property in a rapidly appreciating market like Santa Fe, the appraiser must:
AUse only older comparable sales
BApply market condition (time) adjustments to reflect current appreciation and ensure the appraisal reflects the current market✓ Correct
CSimply use the listing price as value
DReduce the value to account for appreciation risk
Explanation
In fast-moving markets, the appraiser must apply market condition adjustments to bring older comparable sales forward to the effective date of appraisal. Failure to properly account for appreciation (or depreciation) produces an inaccurate value opinion.
Related New Mexico Property Valuation Questions
- In New Mexico, the term 'effective age' in appraisal refers to:
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