Property Valuation
In New Mexico, an appraiser who determines that a property's highest and best use is different from its current use will likely:
AValue it based on its current use only
BValue it based on its highest and best use, which may exceed the current use value✓ Correct
CRefuse to appraise the property
DAverage the current use and highest and best use values
Explanation
Appraisals are based on highest and best use. If a property's highest and best use (e.g., commercial development) is different from current use (e.g., vacant residential), the appraisal reflects the HBU value.
Related New Mexico Property Valuation Questions
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