What is assessed along with potential use when determining the value of vacant land?

When determining the value of vacant land, potential use is an important consideration, and current use plays a significant role in that assessment. Understanding the current use helps assess the land's ongoing utility and market value, even if the land is vacant. Although the term "current use" suggests that it refers to how the property is actively being utilized, in the context of vacant land, it can imply how the land's characteristics, zoning, and surrounding areas influence its value based on potential uses.

For example, if the land is situated in an area where residential development is thriving, understanding the current market dynamics can help forecast its potential value based on its suitability for housing versus commercial use. Thus, current usage insights can inform appraisers and assessors about what the best potential use of the land may be, which ultimately drives its valuation.

In contrast, while aspects like zoning laws and market trends are relevant in the assessment process, they do not directly pertain to how potential use is influenced by the existing actions or usage dynamics surrounding the property itself. Appraisal methods focus on the technical approaches for valuing properties rather than the contextual understanding necessary for assessing vacant land.