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LI Z ZIUCI <br />ACEP -ALE Appraisal Specifications and Scope <br />Analyses of highest and best use <br />a. FOR USPAP APPRAISALS: The contract appraiser may refer to <br />definitions as found in "The Dictionary of Real Estate Appraisal." <br />b. FOR YELLOW BOOK APPRAISALS: For acquisition <br />appraisals, UASFLA defines highest and best use as, "The highest <br />and most profitable use for which the property is adaptable and <br />needed or likely to be needed in the reasonably near future." The <br />contract appraiser may also refer to definitions as found in "The <br />Dictionary of Real Estate Appraisal." <br />i. The UASFLA requires the contract appraiser to make a <br />larger parcel determination in all appraisals. Apply the <br />tests provided in UASFLA Part III to determine the larger <br />parcels. <br />c. ALL APPRAISALS: The highest and best use conclusion must be <br />clearly supported by market evidence. Sale or exchange to the <br />United States or other public entity is not an acceptable highest <br />and best use. The use for which the Federal Government will put <br />the property after it has been acquired is, as a general rule, an <br />improper highest and best use. A noneconomic highest and best <br />use, such as "conservation," "natural lands," "preservation," or <br />any use that requires the property to be withheld from economic <br />production in perpetuity, is not a valid use upon which to base an <br />estimate of market value. <br />d. If the highest and best use is for development, the existing <br />improvements must be analyzed to determine if they contribute to <br />the development or if they would be removed. Stating that the <br />improvements are not affected by the easement is not appropriate <br />until it is determined if the improvements will be removed for the <br />development or if the improvements will remain as part of the <br />development. <br />e. If the highest and best use is for assemblage, describe and explain <br />the relationship of the appraised property to the property to which <br />it would be joined. <br />f. If speculation or investment is the highest and best use of the <br />property, describe and explain its interim and most probable <br />ultimate use. <br />hen there is a claim that the highest and best use of a property is <br />something other than the property's existing use, the burden of <br />proof is on the contract appraiser. <br />h. Market value cannot be predicated upon potential uses that are <br />speculative and conjectural. <br />i. If legal access does not exist to support the highest and best use, <br />the appraiser must provide proof that there is sufficient land <br />available to provide the required access. The contract appraiser's <br />opinion of a reasonable probability of a zoning change must have <br />a factual foundation. The appraisal report must include a <br />description of the investigation undertaken to determine the <br />probability of rezoning. The investigation must include thorough <br />research of the uses and zoning of properties situated similarly to <br />the subject property within the area covered by the zoning <br />authority. The stated rezoning conclusion must be supported by <br />F -7 <br />Attachment number 1 <br />Page 190 <br />