Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public
Many people make assumptions about vacant land parcels based on what they have been told on based on a brief observation. Properties that look valuable may however have little or no potential use, and thus little or no monetary value, while properties that appear worthless can be extremely valuable. For appraisers it all begins with a highest and best use analysis. Depending on the use a highest and best use analysis can be based on observed evidence and the land use patterns, but the process can be more intensive when necessary and include a complete market analysis and feasibility study. Most appraisals do not require the most intensive highest and best use development process.
There are many homes located in Clark County, Nevada that adjoin primary or arterial roadways and some have been zoned and / or planned for a commercial purpose. Appraisers understand that if a property has commercial zoning and / or planning in place that zoning or planning is not necessarily its highest and best use. That’s why a certified general appraiser is employed to analyze the highest and best use of a property, it may appear to some to be obvious but in fact it may not be. While it is possible that an existing residential use is more profitable than the land “as vacant” and available for redevelopment, there is no way of knowing that without having researched land values. Some appraisers don’t want to consider the “as vacant” condition scenario, it mean that you have to complete a separate land valuation, but without having completed it how would you know whether or not the land is worth more “as vacant” or the property is worth more “as improved?”