Answers
Jul 25, 2016 - 09:55 AM
This is a question of appraisal methodology, not of the Uniform Standards of Professional Appraisal Practice (USPAP). USPAP simply requires appraisers to be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce credible assignment results.
Having said that, how a property is occupied, in and of itself, does not determine which approach(es) to value are appropriate. From a USPAP perspective, the question to be answered is whether or not the approach is necessary for credible assignment results.
An income approach may be applicable for an owner-occupied property if the property is viewed as income-producing in the marketplace. If there is no market as an income-producing property, a cost approach may not be applicable.
Having said that, how a property is occupied, in and of itself, does not determine which approach(es) to value are appropriate. From a USPAP perspective, the question to be answered is whether or not the approach is necessary for credible assignment results.
An income approach may be applicable for an owner-occupied property if the property is viewed as income-producing in the marketplace. If there is no market as an income-producing property, a cost approach may not be applicable.
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