highest and best use of land

That reasonable and probable use that supports the highest present value as defined as of the effective date of the appraisal. Terms in this set 32 the highest and best use of a property must be one that is.

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According to The Appraisal Institute The Appraisal of Real Estate 13th Edition link the highest and best use of a property is defined as.

. Alternatively that use from among reasonably probable and legal alternative uses found to be. 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 Fifth Edition of The Dictionary of Real Estate Appraisal by the Appraisal Institute defines highest and best use as.

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. In addition an access ramp 150 feet in length was constructed connecting claimants land with the new road. 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.

According to the local zoning and planning department typically at the county or city level what are you allowed to do with. When a site contains improvements the highest and best use may be determined to be different from the existing use. As part of data analysis the information that is truly relevant to the assignment will then undergo _____ and will be subjected to.

The article concludes by outlining land use and economic development strategies that help cities target firms creating jobs on industrial land. 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 zoning requirements as well as the expectations of.

Demolish the existing structure and redevelop the site Continue the existing use Modify the existing use. One of the earliest citations of the term is found in the Minutes of the Maine Legislature as early as 1831 in speaking about the assessment and valuation of real estate. 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.

The use must be consistent with the site characteristics and physical features of the property. Definition of Highest and Best Use in Real Estate. The use must comply with laws regulations and ordinances.

Excess land has the potential to be sold separately. Highest and Best Use Example. I think everybody agrees with that.

Regardless of property type the approach to determine highest and best use is the same. According to the Appraisal Institute the definition for highest and best use is the reasonably probable and legal use of vacant land or. The concept of highest and best use is one of the fundamental principles that underlie real estate appraisal.

The highest and best use of that land might be retail or commercial. Legal permissibility physical possibility financial feasibility and. HIGHEST AND BEST USE EXAMPLE Highest and best use is defined by Real Estate Appraisal Terminology as follows.

The definition of highest and best use is as follows. 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. If potential uses for the intended property satisfy the first two tests the land is subjected to a financial feasibility test.

HIGHEST AND BEST USE EXAMPLE. That route was relocated reducing claimants frontage on the highway from 1100 feet to 165 feet. The broad principles used in the identification and valuation of excess land are similar for either residential or commercial properties.

The legal use of land or improved property which at any. This concept or theory has been around for a long time. Highest and best use of a property is an economic concept that measures the interaction of four criteria.

The use must add more value than it costs to implement. Only those uses which produce a _____ are considered for the final test of maximum productivity. Highest return can mean different thing to different people Internal Rate of Return Net Present Value development profit or residual land value.

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 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. Highest and Best Use or highest or best use HBU is a concept that originated with early economists such as Irving Fisher 1867-1947 who conceptualized the idea of maximum productivity.

The development of a vacant land area is _____ the highest and best use of the land. 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. The cost of demolition may not be recovered in the value of the future vacant 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. Thats a pretty easy concept. Claimants land formerly abutted Route 22.

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. In my opinion the use that generates the highest net present value is the highest and best use because it takes into account both the time value of money and the cost of capital. There are three possibilities that must be considered for the highest and best use of a property as improved.

When analyzing vacant land the amount of. The Appraisal Institute has. Firm size plays the most important role but the availability of industrially-zoned land and large buildings also helps firms to expand.

As a result of these changes the highest and best use of claimants land was reduced from retail.

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