How do fee appraisers typically value land?

Fee appraisers typically value land by considering its highest and best use. This concept refers to the most profitable legal use of the property, which is fundamentally important in determining its value. An appraiser evaluates what use of the land would generate the most income, taking into account factors like location, zoning, and market demand. This analysis helps in providing a more accurate representation of the land's true market value since a property that could be developed into a commercial site may be worth significantly more than if it were only considered for residential use.

While factors like market trends, zoning laws, and comparisons to neighboring properties play substantial roles in the appraisal process, they are ultimately utilized to assess the highest and best use of the property. Thus, these elements support the overarching value determined through this lens rather than serving as standalone measures of value. The highest and best use approach encapsulates the most comprehensive analysis for valuing land within the appraisal context.