Property Valuation
In New Mexico, when there are very few recent comparable sales (e.g., in a remote rural area), an appraiser might place more weight on the:
ASales comparison approach only
BCost approach and income approach, or use sales from a wider geographic area or older time period with market condition adjustments✓ Correct
CAutomated valuation model (AVM)
DOwner's tax assessment
Explanation
In markets with few comparables (common in rural NM), appraisers may rely more heavily on the cost approach, income approach, or expand the geographic/time parameters for comparables with market condition adjustments to support the value conclusion.
Related New Mexico Property Valuation Questions
- In New Mexico, what is the primary purpose of a property appraisal performed for a mortgage lender?
- In New Mexico, which of the following best describes 'market conditions adjustment' in an appraisal?
- An appraiser uses a 'comparable sale' to adjust for a feature the subject property has but the comparable does not. The appraiser would:
- In New Mexico, the 'discounted cash flow' (DCF) analysis for income property determines value by:
- Which principle of appraisal states that value is created by the expectation of future benefits?
- In New Mexico, 'mass appraisal' is used primarily for:
- In New Mexico, the 'principle of substitution' underlies all three appraisal approaches because:
- In New Mexico, 'neighborhood analysis' in an appraisal helps the appraiser:
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