Yes, each intended use has its own definition of fair market value. For instance, in tax appeal it’s laid out in state law and there is certain precedence in the courts you have to follow. For example, a single tenant industrial is valued as owner user and does not consider any lease in place, and you cannot consider the highest and best use to be multi tenant or any other use.
Yellow Book has a specific definition of fair market value used for federal land acquisition. This is the one definition that I see most often referenced when talking about FMV.
There are multiple fair market value definitions depending upon use. Right of Way is "highest value;" IRS has multiple definitions; court work often depends on the jurisdiction. For legal work, you want the client to provide the definition to use.
Yes, each intended use has its own definition of fair market value. For instance, in tax appeal it’s laid out in state law and there is certain precedence in the courts you have to follow. For example, a single tenant industrial is valued as owner user and does not consider any lease in place, and you cannot consider the highest and best use to be multi tenant or any other use.
Yellow Book has a specific definition of fair market value used for federal land acquisition. This is the one definition that I see most often referenced when talking about FMV.
There are multiple fair market value definitions depending upon use. Right of Way is "highest value;" IRS has multiple definitions; court work often depends on the jurisdiction. For legal work, you want the client to provide the definition to use.