Property Valuation
In Michigan appraisal, 'highest and best use' is defined as:
AThe current use of the property
BThe legally permissible, physically possible, financially feasible, and maximally productive use✓ Correct
CThe use most desired by the owner
DThe use approved by the local zoning board
Explanation
Highest and best use is the use that is legally permissible, physically possible, financially feasible, and maximally productive—resulting in the greatest value for the property. It is the foundation for Michigan appraisals.
Related Michigan Property Valuation Questions
- In Michigan, 'assessed value' for property tax purposes is typically set at what percentage of market value?
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- A Michigan appraiser applies the income approach to a 12-unit apartment building. Net operating income is $96,000 and the cap rate is 8%. The indicated value is:
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