Property Valuation
The 'highest and best use' principle in Kentucky means the appraiser values a property based on its:
ACurrent use regardless of potential
BMost profitable, legally permissible, physically possible, and financially feasible use✓ Correct
CAssessed value assigned by the PVA
DUse as described in the listing agreement
Explanation
Highest and best use is the reasonably probable use that results in the highest present value of the land, considering legal, physical, and financial feasibility.
Related Kentucky Property Valuation Questions
- Reconciliation in the appraisal process refers to:
- External (economic) obsolescence in property valuation refers to:
- A Kentucky appraiser discovers that a comparable sale was a distressed (foreclosure) sale. The appraiser should:
- In Kentucky, an automated valuation model (AVM) is:
- In the cost approach, the formula for estimating value is:
- Economic obsolescence in property valuation refers to a loss in value caused by:
- An appraiser in Louisville uses three comparable sales. After adjustments, the values are $285,000, $290,000, and $287,500. The appraiser assigns the most weight to the $290,000 comparable because it is most similar. The indicated value is:
- A Kentucky appraiser reviewing recent 'flip' transactions (buy-renovate-sell) in a neighborhood must:
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