medium · National Real Estate Exam

If an appraiser determines that a property's current use is a 'non-conforming use' (grandfathered) but its Highest and Best Use would be a different commercial use, how does this affect the reconciliation?

  1. The appraiser will likely weight the cost approach most heavily.
  2. The appraiser is required by USPAP to report a value of zero for the improvements.
  3. The property must be valued based on its current use only.
  4. The land value is determined by the highest and best use, and the existing structure may be considered an interim use.

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