N.J. Admin. Code § 2:77-8.7

Current through Register Vol. 56, No. 24, December 18, 2024

Section 2:77-8.7 - Property valuation before development and transfer acquisition (a/k/a market value unrestricted), where applicable

(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 N.J.A.C. 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.

N.J. Admin. Code § 2:77-8.7

Recodified from N.J.A.C. 2:77-8.8 and amended by R.2013 d.139, effective 12/16/2013.
See: 45 N.J.R. 495(a), 45 N.J.R. 2541(a).
In (c)1vi, inserted a comma following "block"; in the introductory paragraph of (c)2, substituted "that" for "which"; and in (c)2i, substituted "located at N.J.A.C. 2:77-8" for a comma following "sample", and deleted "of this subchapter" following "Appendix C". Former N.J.A.C. 2:77-8.7, General information, recodified to N.J.A.C. 2:77-8.6.