Property Valuation
A Pennsylvania appraiser who determines that a property is not at its highest and best use (e.g., a single-family home in a commercial zone) must:
AAppraise only at its current use value
BAnalyze value under both the current use and the highest and best use, typically appraising at the highest and best use if legal, possible, and financially feasible✓ Correct
CReport only the zoning classification without value
DRecommend demolition before any value is given
Explanation
When the current use is not the highest and best use, the appraisal typically reflects the value under highest and best use — especially when the highest and best use is legally permitted, physically possible, and financially feasible. The appraiser should explain the highest and best use analysis and its impact on value.
Related Pennsylvania Property Valuation Questions
- Curable depreciation in the cost approach refers to items where:
- Which principle of value states that overimprovement of a property reduces value relative to the investment made?
- In the cost approach, the reproduction cost differs from replacement cost in that:
- Comparative market analysis (CMA) and an appraisal are different in that:
- Depreciation for appraisal purposes is:
- Effective age of a building differs from actual age because:
- An appraisal report in Pennsylvania is typically prepared by a licensed or certified appraiser. The term 'market value' means:
- The cost approach to value estimates a property's value by:
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