A California real estate agent is preparing a CMA for a property that borders a newly expanded CEQA-designated habitat area. One comparable also borders the designation, which restricts development on adjacent land. How should the agent address this environmental factor when analyzing the comparable?
Correct Answer
B) Consider the CEQA habitat designation as a location factor that may positively or negatively affect value depending on buyer perceptions and local market data
CEQA (California Public Resources Code §21000 et seq.) habitat designations can affect property values in either direction. Some buyers value proximity to protected natural areas (positive impact), while others are concerned about development restrictions or wildlife issues (negative impact). The agent should consider the specific impact based on local market data and buyer behavior rather than applying a blanket positive or negative adjustment.
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Previous Question
An appraiser in California is valuing a property and one comparable was a sale-leaseback transaction where the seller sold the property and immediately leased it back from the buyer at above-market rent. The recorded sale price was $800,000. Under California appraisal practice, how should the appraiser handle this comparable?
Next Question
A California buyer's agent is reviewing comparable sales data and notices that the county recorder's office lists different documentary transfer tax amounts for similar properties in the same city. Some properties show both a county and city transfer tax, while others show only the county tax. What does this difference indicate about the sale verification process?