highest and best use of land
Legal permissibility physical possibility financial feasibility and. The legal use of land or improved property which at any.
Promoting Public Trust Part 3 Highest And Best Use Riverfront Appraisals One Level Homes Riverfront One Story Homes
Legal permissibility physical possibility financial feasibility maximum productivity.
. 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. 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. Existing improvements or alterations is also important in determining HABU.
All that remains is how valuable a property is when its subjected to its theoretical highest and best use. Two functions are served when an appraiser analyzes a sites highest and best use as though vacant. 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.
Thats a pretty easy concept. Ing that land uses which they propose are the highest and best uses of the real estate under consideration. Splendid views land conservation recreation all are shuffled to the sideline.
Continuing to use the property for retail space yields an estimated value of 1402222. The highest and best use may very well be determined to be different from the existing use. The Four Tests of Highest and Best Use 1.
2027783101 1717 k street nw ste. 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 single family site with the. Land value is a component of the highest and best use of a property.
If the subject property clearly has excess land as in the case of the house on two lots described above the correct answer to this question is usually No followed by an explanation that the highest and best use involves treating the improved and unimproved lots as separate entities in the valuation process. The highest and best use of that land might be retail or commercial. 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.
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. 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 Fifth Edition of The Dictionary of Real Estate Appraisal by the Appraisal Institute defines highest and best use as.
I think everybody agrees with that. 24 Maximally productive use. The concept of highest and best use is one of the fundamental principles that underlie real estate appraisal.
It will be an excellent investment to find an analyst who is aware of the proper and necessary steps that need to be considered throughout the analysis. Highest and best use Def. In some situations its easy for a professional.
The four criteria the highest and best use must meet are. Potential uses of the land as though vacant. This concept or theory has been around for a long time.
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. The broad principles used in the identification and valuation of excess land are similar for either residential or commercial properties.
Highest and best use of a property is an economic concept that measures the interaction of four criteria. 3 Vacant and improved. 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.
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. You must consider whether any zoning issues or restrictions will prevent building on or. 5 Other HBU Considerations.
The definition of highest and best use for real estate. Highest and best use can be defined as 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 A use must meet the following four criteria. The four criteria the highest and best use must meet are legal permissibility physical possibility financial feasibility and maximum productivity.
Highest and best use is defined as the most financially productive usage of a property. 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. It takes into consideration not just the existing structure and use but also the potential value that could be associated with alternative uses.
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. 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. To execute a highest and best use analysis well you must hire an attorney or land-use expert who fully understands the procedures that go into the highest and best use valuation.
Highest and best use is a fundamental consideration in estimating land value. The definition of highest and best use is as follows. 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.
The study of economics has traditionally been expressed in numbers. Excess land has the potential to be sold separately. 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 Appraisal Institute has. You must consider the size shape topography and accessibility of the site when determining if. The appraisal institute defines highest and best use as follows.
Highest and best use analysis and land value optimiation studies delta associates p.
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