Land Use & Zoning
A Louisiana property's 'highest and best use' may change over time because of:
AThe property owner's changing preferences
BChanges in market demand, surrounding development, zoning laws, or available financing that make a different use more feasible and productive✓ Correct
CThe property's physical deterioration only
DFederal government directives
Explanation
Highest and best use is not static — it evolves with changes in market conditions, surrounding land uses, economic conditions, zoning law changes, and development feasibility. Appraisers must evaluate highest and best use as of the effective date of the appraisal.
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Key Terms to Know
Zoning
Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
VarianceOfficial permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
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