highest and best use of land
The highest and best use of land is an analysis tool that evaluates the utility of land to a prospective buyer stripping away all but the economic essentials. Alternatively the probable use of land or improved property specific with respect to the user and timing of the use that is adequately supported and results in the highest present value.
Promoting Public Trust Part 3 Highest And Best Use Riverfront Appraisals One Level Homes Riverfront One Story Homes
Valuation of Land Commercial Development.
. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Highest and Best Use Example. Highest and best use analysis and land value optimiation studies delta associates p.
The four criteria the highest and best use must meet are legal permissibility physical possibility financial feasibility and maximum productivity. When a site contains improvements the highest and best use may be determined to be different from the existing use. The existing use will continue however unless and until land value in its highest and best use exceeds the total value of the property in its existing use In my opinion the highest and best use of the subject land assuming it is unimproved is as a.
Highest and Best Use is the likely use selected from a number of available choices to which an area of land or a building may be put based on what is physically possible and in compliance with zoning and building regulations and which at the time of an appraisal produces the most profitable present value of the land. Highest and best use requires that the appraisal considers not just the current use of the property but also the potential value associated with alternative uses. If vertical development is feasible for multiple property types uses whichever property type yields the highest residual land value is the highest and best use of the land as though vacant.
What they are evaluating according to the Appraisal Institute is. I hate this term. The legal use of land or improved property which at any.
Or the highest and best use could be to immediately develop the land into a specific property type. The Fifth Edition of The Dictionary of Real Estate Appraisal by the Appraisal Institute defines highest and best use as. There are three possibilities that must be considered for the highest and best use of a property as improved.
The highest and best use may very well be determined to be different from the existing use. The use must comply with laws regulations and ordinances. 5 Other HBU Considerations.
Appraisers are the real estate professionals who determine highest and best use for individual pieces of real estate. The reasonably probable and legal use of vacant land or an improved property that is physically possible appropriately supported financially feasible and that results in the highest value. Demolish the existing structure and redevelop the site Continue the existing use Modify the existing use.
According to the Appraisal Institute the definition for highest and best use is the reasonably probable and legal use of vacant land or. In some situations its easy for a. The reasonably probable and legal use of vacant land or an improved property that is physically possible appropriately supported and financially feasible and that results in the highest value.
The Appraisal Institute has. Highest And Best Use Highest And Best Use The most probable legal use of a property based on market evidence as to the date of valuation expressed in an appraisers supported opinion. By Roche Realty Group.
Splendid views land conservation recreation all are shuffled to the sideline. Highest and best use of a property is an economic concept that measures the interaction of four criteria. 2027783101 1717 k street nw ste.
All that remains is how valuable a property is when its subjected to its theoretical highest and best use. The zoning requirements as well as the expectations of. Legal permissibility physical possibility financial feasibility and.
The use must be consistent with the site characteristics and physical features of the property. The use must add more value than it costs to implement. The definition of highest and best use is as follows.
Roche Realty Group Blog. The standard used to evaluate and measure land use and commercial development has always been What is the highest and best use of the site. Terms in this set 32 the highest and best use of a property must be one that is.
Whowhat determines highest and best use. The reasonable probable and legal use of vacant land or an improved property which is physically possible appropriately supported financially feasible and that results in the highest value. Excess land has the potential to be sold separately.
The reasonable probable and legal use of vacant land or an improved property which is physically possible appropriately supported financially feasible and that results in the highest value. 24 Maximally productive use. According to The Uniform Standards of Professional Appraisal Practice 2002 highest and best use is defined as The reasonably probable and legal use of property that is physically possible appropriately supported and financially feasible and that results in the highest value.
The highest and best use of land is an analysis tool that evaluates the utility of land to a prospective buyer stripping away all but the economic essentials. That reasonably probable and legal use of vacant land or an improved property which is physically possible appropriately supported financially feasible and that results in the highest value 12342. Definition of Highest and Best Use in Real Estate.
The broad principles used in the identification and valuation of excess land are similar for either residential or commercial properties. The reasonably probable and legal use of vacant land or an improved property that is physically possible appropriately supported. The highest and best use analysis concept is a form of real estate appraisal that considers not only the best use of the property but any potential use or gains that may come from future ventures.
To me it proposes two potentially opposite. According to The Appraisal Institute The Appraisal of Real Estate 13th Edition link the highest and best use of a property is defined as. The concept of highest and best use is one of the fundamental principles that underlie real estate appraisal.
3 Vacant and improved.
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