The principle of consistent use prohibits:
Correct Answer
A) Valuing the land for one use and the improvements for an incompatible use
Do not add an as-vacant land value for one use to an improvement value assuming an incompatible use if the components cannot jointly support that value. Analyze as-vacant and as-improved uses and conversion or interim effects consistently. Multiple approaches or reuse of a valid comparable are not prohibited.
Why This Is the Correct Answer
Option A is correct because it is incorrect to value a property based on one use for the land and another use for the improvements. Under the principle of consistent use, the improvement should be valued on a basis consistent with the site's highest and best use. Combining incompatible uses overstates value because the components cannot jointly support it.
Why the Other Options Are Wrong
Option B: Using the very same comparable sale in two different appraisal reports
Option B is wrong because using the same valid comparable sale in two different appraisal reports is not prohibited by consistent use. That principle concerns how land and improvements are valued within one property.
Option C: Applying two approaches to one property
Option C is wrong because applying two approaches to one property is normal appraisal practice and is not what consistent use prohibits.
Option D: Zoning changes during an assignment
Option D is wrong because consistent use is a valuation principle, not a restriction on zoning changes during an assignment. Appraisers do not control zoning.
One property, one use
Land and building must tell the same story about how the property will be used.
How to use: Use this when a question describes land and improvements valued under different uses.
Exam Tip
When you see land and improvements valued for different uses, think consistent use.
Common Mistakes to Avoid
- -Adding commercial land value to a residential improvement value
- -Thinking consistent use limits the number of approaches used
- -Ignoring demolition costs when land value assumes redevelopment
Concept Deep Dive
Analysis
This question tests the principle of consistent use. The land and the improvements must be valued under the same, compatible use. An appraiser cannot add a land value based on one use to an improvement value that assumes a different, incompatible use.
Background Knowledge
Consistent use often matters for properties in transition, such as an old house on land that is now best used for commercial development. If the land is valued for commercial use, the house may contribute little or even have negative value due to removal costs. Valuing the house as a residence while valuing the land as commercial would double count.
Real-World Application
A small house sits on a lot whose highest and best use as though vacant is a retail building. The appraiser does not add a residential value for the house to a commercial land value; she considers the house's interim contribution or demolition cost instead.
More Market Questions
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Under USPAP Standards Rule 1-3(a), which item must an appraiser identify and analyze when necessary for credible results in a market value assignment?
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