For a use to be 'legally permissible' in highest and best use analysis, the appraiser may consider a probable rezoning only if:
Correct Answer
B) The market itself evidences the probability, and it is disclosed
Why this is correct: For HBU, "legally permissible" is based on current zoning. However, a probable rezoning can be considered if there is objective market evidence (e.g., recent similar rezoning approvals, land sales at prices reflecting the future use) that supports the probability, and this assumption must be clearly disclosed. Why the other choices are wrong: "The owner intends to apply next year" is a future intention, not current market evidence. "Any neighbor has ever been rezoned" is too vague; evidence must support probability for the subject. "The appraiser personally favors the proposed zoning change" introduces bias and is not objective market evidence. Exam tip: Probable rezoning requires market evidence, not speculation, and must be disclosed.
Why This Is the Correct Answer
Why this is correct: For HBU, "legally permissible" is based on current zoning. However, a probable rezoning can be considered if there is objective market evidence (e.g., recent similar rezoning approvals, land sales at prices reflecting the future use) that supports the probability, and this assumption must be clearly disclosed. Why the other choices are wrong: "The owner intends to apply next year" is a future intention, not current market evidence. "Any neighbor has ever been rezoned" is too vague; evidence must support probability for the subject. "The appraiser personally favors the proposed zoning change" introduces bias and is not objective market evidence. Exam tip: Probable rezoning requires market evidence, not speculation, and must be disclosed.
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