A New York appraiser is valuing a single-family home in Westchester County that has development rights that were sold separately under a conservation easement. Which approach would be most affected by this situation?
Correct Answer
C) Sales comparison approach using properties with similar restrictions
The sales comparison approach would be most affected because finding comparable properties with similar conservation easements and development restrictions is challenging. The appraiser must carefully select comparables that reflect similar limitations on future development and expansion, or make appropriate adjustments for these restrictions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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