Property Valuation
A Michigan appraiser determines that the subject property's highest and best use as improved differs from its highest and best use as vacant. This typically means:
AThe improvements contribute negatively to land value
BThe existing improvements may not represent the optimal use of the site✓ Correct
CThe property should be appraised using cost approach only
DThe improvements must be demolished before the property can be sold
Explanation
When highest and best use as vacant differs from as improved, it suggests the existing improvements may not represent the optimal use of the land. The improvements may still have value, but demolition or conversion might increase total property value.
Related Michigan Property Valuation Questions
- A Michigan appraiser uses three comparable sales to estimate value. After adjustments, the comps indicate values of $312,000, $318,000, and $315,500. The appraiser would most likely conclude a value of approximately:
- In Michigan, 'assessed value' for property tax purposes is typically set at what percentage of market value?
- Economic obsolescence (external obsolescence) affecting a Michigan property could be caused by:
- External factors that support Michigan home values include:
- The income capitalization approach is most commonly used to appraise:
- In Michigan, an appraisal report that provides a brief presentation of the appraiser's findings is called a(n):
- In Michigan, an appraisal must be performed by a licensed or certified appraiser for federally related transactions when the loan amount exceeds:
- Highest and best use in appraisal is the use that is:
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