An appraiser is valuing a single-family home in a Florida community that has an active Community Development District (CDD). The property is subject to CDD assessments for infrastructure improvements, and the CDD bonds have 20 years remaining. A comparable property outside the CDD recently sold for a similar price, but the CDD property has newer infrastructure. How should this affect the valuation?
Correct Answer
C) Make adjustments based on market reaction to CDD assessments versus infrastructure benefits
The appraiser must consider how the market weighs CDD assessment costs against infrastructure benefits, as buyer perceptions vary. Option A oversimplifies the market reaction. Option B ignores the infrastructure value received. Option D unnecessarily limits the comparable pool if proper adjustments can be made.
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