highest and best use of land
The legal use of land or improved property which at any. Terms in this set 32 the highest and best use of a property must be one that is.
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The highest and best use of that land might be retail or commercial.
. The cost of demolition may not be recovered in the value of the future vacant land. The definition of highest and best use is as follows. 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.
In a real sense the definition of highest and best use encompasses four tests. HIGHEST AND BEST USE EXAMPLE. The concept of highest and best use is one of the fundamental principles that underlie real estate appraisal.
The Appraisal Institute has. The broad principles used in the identification and valuation of excess land are similar for either residential or commercial properties. The four criteria the highest and best use must meet are.
So before you lock yourself into commercial development be sure to consider residential highest and best use for the land as well. Capacity ie the lands highest and best use Heilbrun 1974. This concept or theory has been around for a long time.
The use must comply with laws regulations and ordinances. The use must add more value than it costs to implement. Alternatively that use from among reasonably probable and legal alternative uses found to be.
Although improved property is generally more valuable than vacant land the assumed highest and best use of the land may mean clearing away existing structures. 2027783101 1717 k street nw ste. 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.
When a site contains improvements the highest and best use may be determined to be different from the existing use. HIGHEST AND BEST USE EXAMPLE Highest and best use is defined by Real Estate Appraisal Terminology as follows. 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.
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. Highest and best use analysis and land value optimiation studies delta associates p. If you need help finding land or determining the highest and best us give us a call at 602-492-9242 or visit us online.
Thats a pretty easy concept. The Appraisal Institute defines highest and best use as follows. According to the Appraisal Institute the definition for highest and best use is the reasonably probable and legal use of vacant land or.
The zoning requirements as well as the expectations of. 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 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.
The development of a vacant land area is _____ the highest and best use of the land. Also if you have some property that has pipelines or maybe multiple pipelines on it your propertys highest and best use could be as a pipeline corridor. Only those uses which produce a _____ are considered for the final test of maximum productivity.
According to the local zoning and planning department typically at the county or city level what are you allowed to do with. But rather it is a use shaped by the competitive forces within the market where the property is located. That reasonable and probable use that supports the highest present value as defined as of the effective date of the appraisal.
As part of data analysis the information that is truly relevant to the assignment will then undergo _____ and will be subjected to. 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. Definition of Highest and Best Use in Real Estate.
Excess land has the potential to be sold separately. The highest and best use of a specific parcel of land is not determined through subjective analysis by a property owner developer real estate agent or appraiser. Well help you determine exactly what will be the most profitable for you in the long run.
If potential uses for the intended property satisfy the first two tests the land is subjected to a financial feasibility test. The use must be consistent with the site characteristics and physical features of the property. The Fifth Edition of The Dictionary of Real Estate Appraisal by the Appraisal Institute defines highest and best use as.
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. Of course in practice the idea that the market determines land use by the ability of different user.
I think everybody agrees with that. Highest and Best Use Example. According to The Appraisal Institute The Appraisal of Real Estate 13th Edition link the highest and best use of a property is defined as.
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