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 appraiser’s highest and best use
conclusion(s).