What is one reason appraisers may need to consider governmental forces?

Appraisers must take governmental forces into account primarily to assess zoning laws and regulations, as these have a significant impact on property values and land use. Zoning laws dictate what types of properties can be built in specific areas and how those properties can be used. For instance, a parcel of land zoned for commercial use may have a different value than one zoned for residential use due to the potential income generation, permitted activities, and associated demand.

Understanding local zoning regulations allows appraisers to accurately determine the highest and best use of a property, which is a critical factor in valuation. Failure to consider these regulations can lead to misleading appraisals that do not reflect the true market value of the property in question. This aspect of governmental influence is essential in ensuring a comprehensive analysis of real estate and adhering to legal requirements and community standards.