N.J. Admin. Code § 2:77-8.8

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

Section 2:77-8.8 - Property valuation after development acquisition (a/k/a market value restricted), where applicable

(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 N.J.A.C. 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 N.J.A.C. 2:77-8.3(a).

N.J. Admin. Code § 2:77-8.8

Recodified from N.J.A.C. 2:77-8.9 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 (a)1 and (a)5iii, updated the N.J.A.C. reference; in (a)1, substituted "that" for "which"; in (a)4vi, inserted a comma following "block"; in (a)5, inserted a comma following "sale"; in (a)5i, substituted "located at N.J.A.C. 2:77-8" for a comma following "sample", and deleted "of this subchapter, incorporated herein by reference" following "Appendix C". Former N.J.A.C. 2:77-8.8, Property valuation before development and transfer acquisition (a/k/a market value unrestricted), where applicable, recodified to N.J.A.C. 2:77-8.7.