Property Valuation
What does 'highest and best use' mean in Iowa appraisal practice?
AThe use that generates the most rental income
BThe legally permissible, physically possible, financially feasible, and maximally productive use of the property✓ Correct
CThe current use of the property at the time of appraisal
DThe use that results in the lowest property taxes
Explanation
Highest and best use is the reasonably probable and legal use of vacant land or improved property that is physically possible, legally permissible, financially feasible, and that results in the highest value.
Related Iowa Property Valuation Questions
- The principle of 'progression' in real estate value states that:
- Depreciation in real estate appraisal means:
- Iowa agricultural land is often valued using a capitalized income approach. If a 160-acre farm generates $240 cash rent per acre and the cap rate is 4%, what is the indicated value?
- Which of the following BEST defines 'market value'?
- What is the physical deterioration of an Iowa rental property that is considered 'incurable'?
- When using the sales comparison approach, an appraiser makes adjustments to comparable sales prices because:
- The appraisal approach most commonly used to value Iowa farmland is:
- In Iowa, which type of value is used for property tax purposes?
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