Which appraisal principle affirms that land cannot be valued on the basis of one use while improvements are valued on the basis of another?

Study for the IAAO Assessment Administration Specialist (AAS) exam. Engage with flashcards and multiple choice questions, each offering hints and detailed explanations. Prepare thoroughly for your certification!

The principle that states land cannot be valued based on one use while improvements are valued based on another use is known as the principle of consistent use. This concept emphasizes that when determining the value of a property, all aspects—such as the land and any improvements—must be assessed consistently based on their highest and best use. This prevents discrepancies in valuation that could arise from treating different components of a property with conflicting assumptions or usage scenarios.

For example, if the land is valued as if it were to be used for agricultural purposes, then improvements (like a commercial building) cannot be valued as if they were intended for a completely different use, such as residential development. The principle of consistent use insists that both land and improvements should reflect the same use context to ensure a coherent and accurate property valuation.

The other options, while related to the overall process of valuation and property assessment, do not specifically address the inconsistency in use that the principle of consistent use covers. The market value recognizes the price a property would sell for in an open market, highest and best use refers to the most profitable legal use of a property, and the principle of contribution relates to how much a particular improvement adds to the property's overall value. However, none of these principles directly affirm the

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