CANative
Elite Member
- Joined
- Jun 18, 2003
- Professional Status
- Retired Appraiser
- State
- California
From The Appraisal of Real Estate, 13th Edition...
From Table 12.1 - Highest and Best Use Statements in Appraisal Reports, 3rd scenario...
So if the appraiser reports a cost approach, does reporting the opinion of site value, which the form requires be reported in a separate section above the other cost data, mean that the appraiser should be reporting both types of HBU analysis?
When an appraisal report includes a market value opinion, the report must address highest and best use. Highest and best use as though vacant must be addressed in reports that include a market value opinion for the site as though vacant. Highest and best use as improved must be addressed in reports that include a market value opinion for the property as improved.
From Table 12.1 - Highest and Best Use Statements in Appraisal Reports, 3rd scenario...
If...
The property is improved but a separate estimate of land value is presented in the appraisal;
Then the report should include...
Discussion of the highest and best use of the land as though vacant as well as the highest and best use of the property as improved.
So if the appraiser reports a cost approach, does reporting the opinion of site value, which the form requires be reported in a separate section above the other cost data, mean that the appraiser should be reporting both types of HBU analysis?