Contributory land value?

[hastalavista]

Isn't property always appraised under it's highest and best use? If the highest and best use as improved of the house on the commercially zoned land is as a single family home despite permitted commercial uses as if vacant, wouldn't valuing the land as a commercial site be in conflict with this premise?

I may be missing something here: Is the scenario (a) the current zoning does not allow SFR use and it is improved with an SFR (and grandfathered), or (b) the current zoning allows for both SFR and commercial use?

 

[ETex2]

I may be missing something here: Is the scenario (a) the current zoning does not allow SFR use and it is improved with an SFR (and grandfathered), or (b) the current zoning allows for both SFR and commercial use?

Residential uses are a legal non-conforming use so the use is grandfathered. But there are no commercial uses within about 2 miles and no demand. This was a semi-rural area until construction of the Bush Tollway (not quite finished), which will be about one mile to the south of the property.