Section 4.5.4
4.5.4. Impact on Market Value.The scope of the project rule only arises if there is evidence the government’s project affected the market value of the property being appraised. If there is no evidence the government project influenced the property’s market value, no determination of the scope of the project is required because there is no project influence to disregard.698 And while possible project influence on market value can prompt an analysis of the scope of the project, project influence on a property’s marketability cannot: Even a substantial decrease in marketability, decreasing the number of potential buyers, must be disregarded if the price at which the property would be sold is not affected.699 This is because the federal definition of market value assumes the property has already had reasonable exposure time on the open market on the effective date of value.700 Similarly, a substantial decrease in the number of market sales within an announced project boundary would not be considered unless the project has affected the price at which the property could be sold.