hard · National Real Estate Exam valuation

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 most likely weight the cost approach most heavily in the final reconciliation of value.
  2. USPAP requires the appraiser to report a stated value of exactly zero for the subject property's existing improvements.
  3. The property must be valued based strictly and solely on its current, grandfathered non-conforming use, ignoring other factors.
  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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