Transcript Chapter 12 The Student Handbook to THE APPRAISAL OF REAL ESTATE Highest and Best Use Analysis   Fundamentals of Highest and Best Use  Highest and.

Chapter 12
The Student Handbook to
THE APPRAISAL OF REAL ESTATE
Highest and Best Use Analysis
1


Fundamentals of Highest and Best Use
 Highest and Best Use as Improved
 Highest and Best Use as Though Vacant
Testing Criteria in Highest and Best Use
 Physically Possible
 Legally Permissible
 Financially Feasible
 Maximally Productive
Student Handbook to THE APPRAISAL OF REAL ESTATE
Chapter 12
2

Highest and Best Use of Land as Though Vacant
 The Ideal Improvement
 Test of Legal Permissibility of Land as Though Vacant
 Test of Physical Possibility of Land as Though Vacant
 Test of Financial Feasibility of Land as Though Vacant
 Test of Maximum Productivity of Land as Though
Vacant
Student Handbook to THE APPRAISAL OF REAL ESTATE
Chapter 12
3

Highest and Best Use of Property as Improved
 Test of Legal Permissibility of Property as Improved
 Test of Physical Possibility of Property as Improved
 Test of Financial Feasibility of Property as Improved
 Test of Maximum Productivity of Property as Improved
Student Handbook to THE APPRAISAL OF REAL ESTATE
Chapter 12
4
Student Handbook to THE APPRAISAL OF REAL ESTATE
Chapter 12
5

Special Situations in Highest and Best Use Analysis
 Single Uses
 Legally Nonconforming Uses
 Interim Uses
 Speculative Uses
 Uses That Are Not the Highest and Best Use (of Site
as Though Vacant)
 Multiple Uses
Student Handbook to THE APPRAISAL OF REAL ESTATE
Chapter 12
6
Problems

Suggested solutions begin on page 365.
Student Handbook to THE APPRAISAL OF REAL ESTATE
Chapter 12
7