The principle of consistent use prohibits:
Correct Answer
A) Valuing the land for one use and the improvements for an incompatible use
Why this is correct: The principle of consistent use requires that land and improvements be valued based on the same highest and best use (HBU). Valuing land for a more intensive use (e.g., commercial) while valuing improvements for a less intensive use (e.g., residential) creates an inconsistent, unreliable value conclusion. Why the other choices are wrong: "Using the very same comparable sale in two different appraisal reports" is permissible if relevant. "Applying two approaches to one property" is standard appraisal practice. "Zoning changes during an assignment" may affect HBU but doesn't define the principle. Exam tip: In the cost approach, if the improvements do not contribute to the property's highest and best use, their contributory value may be low or zero, but the land and improvements must still be valued for the same use.
Why This Is the Correct Answer
Why this is correct: The principle of consistent use requires that land and improvements be valued based on the same highest and best use (HBU). Valuing land for a more intensive use (e.g., commercial) while valuing improvements for a less intensive use (e.g., residential) creates an inconsistent, unreliable value conclusion. Why the other choices are wrong: "Using the very same comparable sale in two different appraisal reports" is permissible if relevant. "Applying two approaches to one property" is standard appraisal practice. "Zoning changes during an assignment" may affect HBU but doesn't define the principle. Exam tip: In the cost approach, if the improvements do not contribute to the property's highest and best use, their contributory value may be low or zero, but the land and improvements must still be valued for the same use.
More Market Questions
Building permit data is most useful to an appraiser as:
In the neighborhood life cycle, what characterizes the decline stage?
In which phase of the real estate cycle do rising vacancies first meet a still-growing construction pipeline?
Employment in a one-industry town falls 20%. Through what mechanism does housing demand contract?
Frictional vacancy in a rental market refers to:
The principle of opportunity cost applied to real estate means:
A neighborhood with a wide range of property values requires the appraiser to:
In-migration to a metro area increases housing demand primarily by:
Absorption rate expressed in units per month is calculated by:
Two subdivisions share a school district but differ sharply in price point and buyer profile. They are best treated as:
People Also Study
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam
Income Approach
8.2% of exam
