Current through Register Vol. 56, No. 18, September 16, 2024
(a) The property
valuation before development easement acquisition (market value unrestricted)
section of the appraisal report shall contain a description of the subject property
including all physical attributes and improvements which shall include, but not be
limited to:
1. A discussion of the topography,
soil characteristics, hydrologically limited areas, State owned or privately held
riparian lands, frontage, configuration, dwellings, outbuildings, and other
appropriate characteristics;
2. Any
rejected, approved, or pending subdivision plans; and
3. Any existing residences.
(b) This section of the report shall include a
detailed discussion of the subject property's highest and best use based upon its
characteristics as set forth in this section.
(c) The development potential sold or purchased by
the Board involves an interest in property only. As a result, it is only the value
of an interest in property that needs to be derived. The appraiser must consider if
there is an increment of value attributed to the property as a result of transfer of
development credits.
1. When considering the
direct sales comparison method of valuation, the appraiser shall compare vacant
acreage sales to the subject property. At a minimum, this section of the report
shall address the following for each vacant acreage sale compared:
i. The grantor and grantee;
ii. The deed date and recording date;
iii. The deed book and page;
iv. The sale price;
v. The property size or number of
credits;
vi. The location, block, and
lot, if applicable;
vii. The soil types
and percent tillable, if applicable;
viii. The frontage and access, if
applicable;
ix. The conditions of sale,
if applicable;
x. Improvements, if
applicable;
xi. Utilities, if
applicable;
xii. Easements;
xiii. Verification, if applicable; and
xiv. A legible copy of the tax map, if
applicable.
2. The appraiser
shall adjust the comparable sales to include salient characteristics in the market
that may include, but not be limited to, the following: soil characteristics,
zoning, topography, hydrologically limited areas, riparian lands (State owned or
privately held), date of sale, and financing.
i.
The appraiser shall provide a land sale comparative rating grid in conformance with
the sample located at N.J.A.C. 2:77-8 Appendix C, incorporated herein by
reference.
ii. The value conclusion must
be expressed as a TDR figure and a total figure for the property.
3. In addition, the appraiser may
consider the methods of valuation as described in
2:77-8.4(a).
4. The appraiser shall provide a value conclusion
that identifies the final market value unrestricted for the subject property and
discuss how the conclusion was determined.
