Consistent Use

Consistent Use is an appraisal principle requiring that the land and the improvements be valued on the same basis.  It is improper to value the land at one use and the improvements at another use.

 

Improvements must contribute to land value to have any value themselves.  Stated another way:  If the land plus the improvements are worth less than the land alone, the improvements have no value.

 

Land and improvements should be appraised based on consistent use.  It would be incorrect to appraise the land on a commercial basis and the improvements on a residential basis.  Both the land and improvements must be valued on the same use.

 

The reasons for this are fairly obvious.  If the land is going to be used commercially, then the house is worthless as a residence.  If the house is going to be used as a residence then the land is worthless commercially.

Page url: http://www.georgiaappraiser.com/glossary/index.html?consistentuse.htm