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