Property Valuation
The highest and best use of a property is defined as the use that is:
ACurrently authorized by the existing zoning designation
BLegally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CPreferred by the current property owner
DMost commonly found in the surrounding neighborhood
Explanation
Highest and best use is the reasonably probable use of a property that is legally permissible, physically possible, financially feasible, and that results in the highest value. It is a fundamental concept in real estate appraisal.
Related Connecticut Property Valuation Questions
- A Connecticut appraiser estimates the reproduction cost of a building at $850,000. The physical depreciation is estimated at 25%, functional obsolescence at 10%, and external obsolescence at 5%. The land value is $150,000. What is the indicated value by the cost approach?
- A 'paired sales analysis' is used by appraisers to:
- Which principle of value states that the value added by any component of a property should be measured by what it contributes to the whole?
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- A Connecticut property recently sold for $630,000. If the annual property taxes are $9,450, what is the effective tax rate as a percentage of the sale price?
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