USPAP Standard Rule 1-3

 

Standards Rule 1-3

When necessary for credible assignment results in developing a market value opinion, an appraiser must:

(a)

identify and analyze the effect on use and value of existing land use regulations, reasonably probable modifications of such land use regulations, economic supply and demand, the physical adaptability of the real estate, and market area trends; and

Comment: An appraiser must avoid making an unsupported assumption or premise about market area trends, effective age, and remaining life.

(b)

develop an opinion of the highest and best use of the real estate.

Comment: An appraiser must analyze the relevant legal, physical, and economic factors to the extent necessary to support the appraisers highest and best use conclusion(s).

Original content was published in The Appraisal Foundation site.

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