What type of property often requires special appraisal considerations due to ownership complexities?

Leased properties often require special appraisal considerations due to the complexities associated with the lease agreements and the rights of both the tenant and the landlord. In these situations, appraisers must analyze various factors, such as the lease terms, the remaining duration of the lease, and any renewal options.

Understanding the specifics of the lease is crucial, as it can significantly affect the property's value. For instance, if a property is leased at below-market rates, the appraiser may need to account for this when determining the market value, as future rental income potential could be suppressed. Additionally, certain leased properties may have restrictions that influence their usage or marketability, impacting the overall value.

In contrast, single-family homes, commercial properties, and mixed-use developments typically have more straightforward ownership structures that do not necessarily complicate the appraisal process to the same extent as leased properties, where the interplay of tenant rights and rental agreements can substantially modify the valuation approach.