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What is the use of theories?

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Anonymous

13y ago
Updated: 3/1/2023

The theory of consistent use is used in the appraisal of real estate. It means:

The concept that land cannot be valued on the basis of one use while the improvements are valued on the basis of another. The concept of consistent use must be addressed when properties are devoted to temporary interim uses. Improvements that do not represent the land's highest and best use but have substantial remaining physical lives may have an interim use of temporary value, no value at all, or even negative value if substantial costs must be incurred for their removal.7

7 The Dictionary of real estate Appraisal, Fourth Edition, Appraisal Institute, Chicago., IL

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Bennett Bode

Lvl 13
2y ago

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