Property Valuation
What is 'highest and best use' in real estate appraisal?
AThe use that generates the most traffic
BThe legal, physically possible, financially feasible use that produces the highest value✓ Correct
CThe use currently approved by the zoning ordinance
DThe use that requires the least maintenance
Explanation
Highest and best use is the reasonably probable use of a property that is legally permissible, physically possible, financially feasible, and maximally productive.
People Also Study
Related Kansas Questions
- What is the 'highest and best use' principle in Kansas real estate appraisal?Property Valuation
- In a Kansas appraisal, 'arm's length transaction' means:Property Valuation
- Depreciation in real estate appraisal refers to:Property Valuation
- External obsolescence in real estate appraisal is caused by:Property Valuation
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Study This Topic
Practice More Kansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kansas Quiz →