Property Valuation
An Arizona appraiser's determination that a property's highest and best use as if vacant differs from its current use is significant because it means:
AThe property is zoned incorrectly
BThe land may be underutilized and the improvement may be contributing less value than the land alone in its highest and best use✓ Correct
CThe seller should not sell
DThe appraisal cannot be completed
Explanation
When highest and best use as vacant differs from as improved, it suggests the site could be worth more if redeveloped. The improvement may represent a 'plottage opportunity' or be a 'functional surplus' impeding the land's best use.
Related Arizona Property Valuation Questions
- In the sales comparison approach, an appraiser makes 'adjustments' to comparable sales. If a comparable sale has a pool and the subject property does NOT, the appraiser would:
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- In Arizona, a Comparative Market Analysis (CMA) prepared by a real estate agent is:
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