Property Valuation (alternative)
An appraiser in Maryland determining the highest and best use of a property would consider:
AOnly the current use of the property
BLegal permissibility, physical possibility, financial feasibility, and maximum productivity✓ Correct
CThe seller's desired use only
DThe lender's preferred use for collateral purposes
Explanation
Highest and best use analysis requires examining: (1) legal permissibility—what uses the law allows; (2) physical possibility—what the site can support; (3) financial feasibility—what would generate positive returns; and (4) maximum productivity—which feasible use generates the most value.
Related Maryland Property Valuation (alternative) Questions
- The principle of substitution in Maryland appraisal theory states that:
- In Maryland, the 'economic rent' of a property refers to:
- In the income approach to appraisal, 'effective gross income' is calculated as:
- In Maryland, the cost approach is MOST useful when appraising:
- In Maryland, the term 'as-improved' value in an appraisal means:
- In Maryland, an appraiser's adjustment for location differences between properties recognizes that:
- In Maryland, an appraiser's estimate of value is called a(n):
- A Maryland appraiser who completes a 'desktop' appraisal uses:
Practice More Maryland Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maryland Quiz →