N.J. Admin. Code § 2:76-10.6

Current through Register Vol. 56, No. 12, June 17, 2024

Section 2:76-10.6 - Property valuation before development easement acquisition (market value unrestricted)

(a) The property valuation before development easement acquisition (market value unrestricted) section of the appraisal report shall contain the following:

1. A description of the subject property including all physical attributes and improvements which shall include, but not be limited to:

i. 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;

ii. Any rejected, approved, or pending subdivision plans;

iii. Any exceptions to the subject property. (The appraiser shall incorporate the effect of the value of exceptions into the valuation); and

iv. The estimated acreage of hydrologically limited areas.

(b) A detailed discussion of the subject property's highest and best use based upon its characteristics as set forth in this section.

(c) A determination of the subject property's market value unrestricted. The appraiser shall consider the effect of building and improvements when conducting the valuation, but only the market value of the land is required to be identified.

1. 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. At a minimum, the report shall address the following:

i. Grantor/grantee;

ii. Deed date/recording date;

iii. Deed book and page;

iv. Sale price;

v. Property size;

vi. Location, block and lot;

vii. Soil types/percent tillable soils;

viii. Frontage/access;

ix. Conditions of sale;

x. Color photograph(s);

xi. Improvements;

xii. Utilities;

xiii. Easements;

xiv. Verification; and

xv. Legible copy of subject tax map.

2. The appraiser shall adjust the comparable sales to include salient characteristics in the market which 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, Appendix C of this subchapter, incorporated herein by reference.

ii. The final estimate of value shall be expressed as a per acre figure and a total value for the property.

3. In addition, the appraiser may consider the following methods of valuation:

i. Subdivision method;

ii. Income capitalization method; and

iii. Cost method.

4. The appraiser shall provide a value conclusion which identifies the final market value unrestricted for the subject property and discuss how the conclusion was determined.

N.J. Admin. Code § 2:76-10.6

Amended by R.2003 d.208, effective 5/19/2003.
See: 35 New Jersey Register 379(a), 35 New Jersey Register 2176(a).
In (a)1, deleted existing iii and recodified existing iv through v as iii through iv.