New Jersey Administrative Code
Title 2 - AGRICULTURE
Chapter 76 - STATE AGRICULTURE DEVELOPMENT COMMITTEE
Subchapter 10 - APPRAISAL HANDBOOK STANDARDS
Section 2:76-10.7 - Property valuation after development easement acquisition (market value restricted)
Universal Citation: NJ Admin Code 2:76-10.7
Current through Register Vol. 56, No. 18, September 16, 2024
(a) The property valuation after development easement acquisition (market value restricted) section of the appraisal report shall contain the following:
1. A description of the subject property in
conformance with
2:76-10.6(a)1. In
addition, an evaluation of the deed restrictions contained in
2:76-6.1 5 and their effect on the
subject property, the subject property's adaptability for agricultural use or other
uses which are not in conflict with the deed restrictions, soils and their
productivity and other items which are significant to the valuation of the subject
property;
2. A detailed description of
the subject property's highest and best use as encumbered by the deed restrictions.
The highest and best use analysis shall consider the following:
i. The legality of possible use;
ii. The physical possibility of use;
iii. The probability or likelihood of use;
and
iv. The economic feasibility of
use.
3. A determination of
the subject property's market value restricted. The appraiser shall consider the
effect of buildings and improvements when conducting the valuation, but only the
market value of the land is required to be identified.
i. The appraiser shall consider the direct sales
comparison method of valuation which shall be based on a comparison of the relevant
vacant acreage sales to the subject property as encumbered by the deed restrictions.
The appraiser shall consider the following types of land sales;
(1) Deed restricted properties;
(2) Physically limited properties;
(3) Flood plain;
(4) Low development pressure; and
(5) Development easements.
ii. The appraiser shall adjust the comparable
sales to include, but not be limited to, the following: soil characteristics,
zoning, hydrologically limited areas, date of sale, financing, and residential
opportunities.
(1) The appraiser shall consider
the effect of residential opportunities, including an existing residential unit, an
exception, which is not encumbered by the deed restrictions, or a residual dwelling
site opportunity allocated to the subject property pursuant to
2:76-6.1 7, if appropriate, and any
other improvements when conducting the valuation, but only the market value of the
land is required to be identified.
(2)
The appraiser shall determine if there is an increment of value attributed to the
land that is independent of the actual value of the improvement.
(3) The appraiser shall provide a land sale
comparative rating grid in conformance with the sample in Appendix C.
(4) The final estimate of value shall be expressed
as a per acre value and a total value for the property.
iii. In addition, the appraiser may consider the
following methods of valuation:
(1) Income
capitalization; and
(2) Cost
approach.
Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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