Property Valuation
An appraiser in New Mexico who discovers that the subject property has a legal nonconforming use should:
AIgnore it as it doesn't affect value
BConsider its impact on value—a nonconforming use may add or detract from value depending on the situation✓ Correct
CAlways reduce the value estimate by 10%
DReport it to the local planning department
Explanation
A legal nonconforming use can significantly affect value. A commercial use in a now-residential zone may command premium value, but the inability to rebuild if destroyed is a limiting factor that affects value.
Related New Mexico Property Valuation Questions
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