Property Valuation
A Texas appraiser determines that a property's highest and best use is commercial rather than its current residential use. For appraisal purposes, the appraiser should:
AAppraise the property at its residential value only
BValue the property based on its highest and best use as commercial land✓ Correct
CDecline the appraisal assignment
DUse only the cost approach
Explanation
Highest and best use is the foundational concept of appraisal. If the highest and best use of a site differs from current use, the property should be valued at its highest and best use (which may exceed current use value).
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