|
When necessary for
credible assignment results, an appraiser must:
|
|
(a) |
in appraising real property,
identify and analyze the effect on use and value of the following factors:
existing land use regulations, reasonably probable modifications of such
regulations, economic supply and demand, the physical adaptability of
the real estate, neighborhood trends, and highest and best use of the
real estate; and
|
|
|
Comment:
This requirement sets forth a list of factors that affect use and value.
In considering neighborhood trends, an appraiser must avoid stereotyped
or biased assumptions relating to race, age, color, gender, or national
origin or an assumption that race, ethnic, or religious homogeneity is
necessary to maximize value in a neighborhood. Further, an appraiser must
avoid making an unsupported assumption or premise about neighborhood decline,
effective age, and remaining life. In considering highest and best use,
an appraiser must develop the concept to the extent required for a proper
solution to the appraisal problem.
|
|
(b) |
in
appraising personal property: identify and analyze the effects on use
and value of industry trends, value-in-use, and trade level of personal
property. Where applicable, analyze the current use and alternative uses
to encompass what is profitable, legal, and physically possible, as relevant
to the type and definition of value and intended use of the appraisal.
Personal property has several measurable marketplaces; therefore, the
appraiser must define and analyze the appropriate market consistent with
the type and definition of value.
|
|
|
Comment:
The appraiser must recognize that there are distinct levels of trade and
each may generate its own data. For example, a property may have a different
value at a wholesale level of trade, a retail level of trade, or under
various auction conditions. Therefore, the appraiser must analyze the
subject property within the correct market context. |
|
|
|
|