If a property is transitioning from one use to another, what must appraisers consider?

When a property is transitioning from one use to another, appraisers must take into account both the old and new uses for valuation. This is crucial because the value of a property is often influenced by its highest and best use at any given time. Understanding both the previous and current uses allows appraisers to analyze how the value is affected by the change in use, potential demand, and market conditions associated with each type.

For example, if a property was previously used as industrial space but is transitioning to residential use, the appraiser would need to evaluate how much the industrial use was worth compared to the potential value of the property once it is utilized for residential purposes. This comprehensive approach allows for a more accurate assessment of the property’s value in light of its changing circumstances.