Property Valuation
An Arizona commercial appraiser determines that a property is NOT at its highest and best use because current zoning restricts a more profitable use. The appraiser should:
AAppraise based on the restricted use only, ignoring the potential higher value
BNote the zoning restriction but consider whether it is probable that the zoning could be changed, impacting value✓ Correct
CAppraise as if the zoning restriction doesn't exist
DAutomatically apply the income approach based on the restricted use
Explanation
The appraiser must consider the current zoning restrictions but may also analyze whether a change in zoning is legally permissible, physically possible, and financially feasible. If rezoning is probable, it would be factored into the highest and best use analysis and value.
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