New Jersey Administrative Code
Title 2 - AGRICULTURE
Chapter 77 - TRANSFER OF DEVELOPMENT RIGHTS
Subchapter 8 - REPORTING REQUIREMENT FOR PUBLIC WORKS
Section 2:77-8.8 - Property valuation after development acquisition (a/k/a market value restricted), where applicable
Universal Citation: NJ Admin Code 2:77-8.8
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 property in conformance
with 2:77-8.6(a)1. In
addition, a discussion of the restrictions/enhancements and their effect on the
subject property, the subject's adaptability for agricultural use (or other uses),
soils and their productivity, and other items that are significant to the valuation
of the subject property shall be included;
2. A detailed description of the subject
property's highest and best use. 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;
iv. The economic feasibility of
use; and
v. Of those uses meeting the
criteria in (a)2i through iv above, the use yielding the highest return;
3. A determination of the subject
property's market value restricted. As in the unrestricted situation, the
decremental or incremental value to the land is sought as a result of the deduction
or addition of TDRs to the property appraised.
i.
The appraiser shall consider the direct sales comparison method of valuation that
shall be based on a comparison of the relevant vacant acreage sales to the subject
property as unencumbered by deed restrictions. The appraiser shall consider the
following types of land sales:
(1) Deed restricted
properties;
(2) Physically limited
properties;
(3) Flood plain;
and
(4) Low development
pressure;
4. The
appraiser shall consider the direct sales comparison method of valuation that shall
be based on a comparison of the relevant 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 TDRs;
vi. The location, block, and lot (including
approximate distance to the subject), 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.
Color photograph(s), if applicable;
xi.
Improvements, if applicable;
xii.
Utilities, if applicable;
xiii.
Verification, if applicable; and
xiv. A
legible copy of the tax map, if applicable;
5. The appraiser shall adjust the comparable sales
to include salient characteristics in the market which may include, but not be
limited, to the 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.
ii. The final estimate of
value shall be expressed as dollars per acre, dollars per TDR credit and total
dollars for the property.
iii. In
addition, the appraiser may consider the methods of valuation as described in
2:77-8.3(a).
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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