highest and best use real estate meaning

Highest and Best Use. 1 legally permissible 2 physically possible 3 financially feasible and 4 most profitable.

Highest Best Use In Real Estate Definition Faqs

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.

. As an example you might offer 285000 for a. The reasonable probable and legal use of vacant land or an improved property which is physically possible. The most likely and profitable use of the site as if vacant under the requirements set forth above.

One method of determining the best way to use a property is a system called highest and best use Highest and best use is a real estate term for the most profitable. The four tests of highest and best use are. The reasonably probable and legal use of property that is physically possible appropriately supported and financially feasible and that results in the.

Pon Winstead Real Estate Agent Berkshire Hathaway HomeServices Carolina Premier Properties. In real estate appraisals the use of a property that leads to its highest possible value. Use of a parcel of land that will produce the.

The highest and best use may not be the current use of a property. In commercial real estate the phrase refers to a property that represents its most profitable and feasible use. An analysis of highest and best use involves two considerations.

Starting his real estate journey in 2012 with a bank-sale purchase he has since grown. Definition of Highest and best use. 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.

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. He specializes in finding the highest and best use of real property and coaching others to do the same. The definition of highest and best use is as follows.

Highest and best use analysis evaluates each potential use of the. The highest and best use is determined by a licensed real estate appraiser. Dictionary of Real Estate Terms.

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. The top answer we received was Highest and Best Use. Highest and Best Use is the reasonable probable and legal use of vacant land or an improved property.

In conclusion be sure to use definition 1 when making your real estate decisions. Highest and best use. 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.

The highest and best use is the uses which maximizes the NPV of your project subject to existing. An escalation clause offers to go above the highest bid by a certain dollar amount up to a specified maximum price. The first two tests are interchangeable in order and.

The net present value of cash flows discounted at a rate of 10 yields a property value of 1485848.

Recognizing Potential For Highest Best Use Huffpost Contributor