Property Valuation

In Maine, a property with a 'deed restriction' limiting use to single-family residential is being appraised for potential commercial development. The appraiser should:

AAppraise at commercial use value ignoring the restriction
BAppraise subject to the deed restriction, limiting the analysis to permitted uses✓ Correct
CRecommend the buyer seek to have the restriction removed
DIgnore the restriction if it is old

Explanation

An appraiser must appraise the property as legally permitted to be used. If a deed restriction limits use to single-family residential, the appraisal must reflect that restriction unless it has been or can be legally removed.

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