highest and best use real estate meaning

5 946 reviews Highest rating. The land is financially feasible supported and physically possible resulting in the highest and best value.

Highest And Best Use Real Estate Analysis Retipster

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.

. The highest and best use is the uses which maximizes the NPV of your project subject to existing. Of the financially feasible use or uses the highest. The reasonable probable and legal use of vacant land or an improved property which is physically possible appropriately supported.

The highest and best use is determined by a licensed real estate appraiser. A prospective use cannot be considered the highest and best use unless that use would be allowed under current building codes zoning ordinances environmental laws and other. The definition of highest and best use is as follows.

The definition of highest and best use of land as if vacant requires appraisers evaluate the following four criteria. Appraisers begin their highest and. The reasonably probable and legal use of property that is physically possible appropriately supported and financially feasible and that results in the.

This is the legal use and reasonably probable use of a vacant land or improved property. Dictionary of Real Estate Terms. George Jarrous Real Estate Agent Century 21 Curran Oberski.

Definition of Highest and best use. The net present value of cash flows discounted at a rate of 10 yields a property value of 1485848. The top answer we received was Highest and Best Use.

Highest and best use. The test of maximum productivity is applied to the uses that have passed the first three tests. In conclusion be sure to use definition 1 when making your real estate decisions.

Use of a parcel of land that will produce the greatest current value. In commercial real estate the phrase refers to a property that represents its most profitable and feasible use. Real estate is defined as the land and any permanent structures like a.

Highest and best use analysis evaluates each potential use of the. The reasonable probable and legal use of vacant land or an improved property which is physically possible appropriately. Most Profitable or Maximally Productive Use.

The definition of highest and best use is as follows. In real estate highest and best use refers to the reasonable probable and legal use of vacant land or an improved property that is physically possible appropriately supported. Application of Highest and Best Use Principles The Appraisal of Real Estate fourteenth edition.

Highest and best use highest and best use an appraisal term meaning the legally financially and physically possible use that at the time of appraisal is. Highest and Best Use is the reasonable probable and legal use of vacant land or an improved property. Of comparable salesor does highest and best use set the criteria for the valuation methods.

L A Luxury Real Estate Fight The Battle Over The One Los Angeles Times