highest and best use analysis example

THE HIGHEST AND THE BEST USE ANALYSIS. An analysis of Highest and Best Use often looks at the property as both improved and as vacant.

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By way of example think of a situation where the appraiser for the government contends.

. Highest and best use analysis pdf. When analyzing vacant land the amount of land and how it is zoned are two. When the land is worth more that the house and the improvements on it then the highest and best use is a use other.

Specifically the appraisal institute describes the highest and best use of a property as the reasonably probable and legal use of vacant land or an improved property that. According to The Uniform Standards of Professional Appraisal Practice 2002 highest and best use is defined as The. The highest and best use for the subject property is probably as an office.

We sometimes tend to think of the highest and best use in terms of current use and that can lead us to form a conclusion that might be inconclusive to the client. The highest and best use of the site is to demolish the house and sell the site as a commercial lot. O highest and best use of property to be short-term holding development property and o market value estimated to be 1000000.

For example the highest and best use might be a commercial building or an office building. According to The Uniform Standards of Professional Appraisal Practice 2002. Highest and Best Use Example.

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. Analyzing Vacant Land Regardless of property type the approach to determine highest and best use is the same. Almost always presumed to highest and best use analysis sample or decreases in which methodology used is often includes good condition.

An example of this would be a. The highest and best use may very well be determined to be different from the existing use. Likewise for example the proposed use is legal and physically possible but it does not suit the local areas market demographic then it will not improve maximum productivity.

Highest and Best Use Example. In some cases marketmarketability data may require a more specific. SECTION 6THE HIGHEST AND THE BEST USE ANALYSIS It is the use which is physically the most appropriate to the building permitted by.

The existing use will continue however unless and until land value in its highest and best use. Intended use of the appraisal was to secure. The market value would be 225000 250000 site value minus 25000 demolition cost.

The following is an example for a residential appraisal report that can be used and modified if necessary. In this case the property is being under-utilized and is not being put to its highest and best use. A good example of this is a large property with a single small structure and a huge parking lot.

A simple paragraph is sufficient to cover all four parts of highest and best use.

The Concept Of Highest And Best Use In Property Development The Concept Of Highest And Best Use In Studocu