highest and best use real estate appraisal

Highest and best use is a type of real estate analysis performed by appraisers to determine the best use for a given property. According to Jim Pruitt and the Dictionary of Real Estate Appraisal 6 th Edition Highest and best use is the reasonably probable use of property that results in the highest.

Highest And Best Use Real Estate Analysis Retipster

The use of the real estate existing as of the effective date of the appraisal must be included to distinguish the use from the highest and best use 715.

. 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. Highest and Best Use or highest or best use is a concept that originated with early economists such as Irving Fisher who conceptualized the idea of maximum productivity. The plaintiff claimed that the lands highest and best use was its interim use and the interim use should be the basis of the lands market value.

The reasonably probable and legal use of vacant land or an improved property that is physically possible. The reasonably probable and legal use of vacant land or an improved. Est and best use is to be considered in valuing real property13 Highest and best use and market value are tied to use since value is created through the use of the property.

Then the appraiser evaluates an improved propertys highest and best use via. The defendants appraiser concluded that the. The Appraisal Institute defines highest and best use as follows.

To make this assessment appraisers ask. Highest and best use is based on the use that is going to bring the highest value. That reasonable and probable use that supports the highest present value as defined as of the.

The appraiser starts the highest and best use analysis by evaluating the land as though vacant. The reasonably probable and legal use of vacant land or an improved property that. Highest and best use shows how the highest value for a piece of real estate is concluded.

According to The Appraisal Institute the highest and best use of a property is defined as. Highest and best use is defined by Real Estate Appraisal Terminology as follows. The Fifth Edition of The Dictionary of Real Estate Appraisal by the Appraisal Institute defines highest and best use as.

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