Appraising in Hunterdon County

Hunterdon County appraisal

Appraising in Hunterdon County is similar to appraising in counties that are farther east in some ways and different in others.  When appraising residential property, the sales comparison approach is always the dominant way to determine fair market value.  In this approach, the appraiser will gather information about the subject property (or property to be appraised) and then research comparable sales that have sold recently on the Multiple Listing Service (MLS).

Unlike counties that are farther east, many homes in Hunterdon County have larger lots and acreage.  When appraising a home with large acreage, it is important for the appraiser to know how to make the proper monetary adjustments for the differences in land between the subject property and the comparables selected. 

We use a specialized software which helps us to determine appropriate adjustments for lot size and building size, also known as gross living area.  Information from the MLS and tax records are downloaded into this software which then utilizes statistical analyses.  Several different statistical methods are applied, and appropriate adjustments are reconciled.   

Some lots in this area are farmland assessed, meaning they are designated as farmland and have a significantly reduced amount of taxes for that land.  To be farmland assessed, the owner also must show a minimum amount of income per year from the farmland.  Many owners sell hay or have an orchard to sell fruit.  If the subject has large acreage, it is typically a dominant factor in the search criteria to try and find comparables with large acreage as well. 

During the pandemic, the market took a dip in the Spring of 2020, however once June hit and the doors opened a little, the real estate market was off to the races.  For the following two years the market appreciated in double digits per year.  In the summer of 2022, thing have cooled significantly.  This is a result of rising interest rates and a lack of inventory in the market.  The interest rates at 6.3% are the highest they have been since November of 2008.

While there is still strong demand for homes to be appraised in Hunterdon County, the lack of inventory means there has been less transactional volume.  That also translates to less available comparables to choose from.  Therefore, appraisers must either go farther back in time or farther out in distance.  It is not uncommon to search farther out in distance for comparables in Hunterdon County versus counties that have homes tighter together.   And due to the lack of inventory, searching farther back in time can now be common practice.  If this is the case, the appraiser can make “time” adjustments to reflect the current market conditions.

If you need an appraisal in Hunterdon County, whether it is for a pre-listing decision, estate planning, divorce, PMI removal, or another reason please reach out to American Realty Appraisals at 908-233-1337.  We stand behind our service.  We now have over 50 5 star reviews on Google and will do our best to continue to provide quality reports in a timely manner.