Property Valuation
What does 'highest and best use' mean in real estate appraisal?
AThe most profitable use of the land regardless of legal restrictions
BThe reasonably probable use that produces the greatest return and is legally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CThe current use of the land as improved
DThe use desired by the property owner
Explanation
Highest and best use is the reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value.
Related New York Property Valuation Questions
- The principle of 'conformity' states that:
- In New York, the 'principle of anticipation' holds that:
- When appraising a two-family home in Brooklyn, an appraiser most likely uses which primary valuation approach?
- A New York property has a net operating income of $120,000 and is capitalized at a 6% rate. Its indicated value using the income approach is:
- A New York appraiser who finds that three comparable sales indicate values of $480,000, $495,000, and $510,000 for a subject property would most likely conclude a final value of approximately:
- Which appraisal method is most commonly used for single-family residential properties?
- The income approach to value is most appropriate for:
- Plottage value refers to:
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →