Property Valuation
Highest and best use in real estate appraisal is defined as the use that is:
ACurrently being made of the property
BLegally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CMost profitable regardless of legality
DThe use the owner desires
Explanation
Highest and best use is the reasonably probable use that is legally permissible, physically possible, financially feasible, and results in the highest value for the property.
Related Arizona Property Valuation Questions
- A commercial property's 'potential gross income' (PGI) represents:
- The principle of conformity in real estate appraisal holds that:
- A property with 'functional obsolescence' due to having only 1 bathroom in a 5-bedroom home represents:
- When appraising a duplex, the most appropriate approach would typically be:
- Scarcity as a principle of value means that:
- A cost approach appraisal requires calculating depreciation, which includes:
- A leasehold interest in Arizona has value when:
- A capitalization rate is derived in appraisal by:
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →