Property Valuation
What is the highest and best use of a property?
AThe most profitable use regardless of legality
BThe legally permissible, physically possible, financially feasible, maximally productive use✓ Correct
CThe current use of the property
DThe use desired by the property owner
Explanation
Highest and best use is the reasonably probable use that is legally permissible, physically possible, financially feasible, and maximally productive, resulting in the highest value for the property.
Related Ohio Property Valuation Questions
- What is the principle of anticipation in real estate valuation?
- In Ohio, a property's value is negatively affected by a nearby industrial facility. An appraiser would classify this as:
- An Ohio appraiser determines a comparable sale involved seller financing at below-market rates, making the price higher than it would have been with typical financing. The appraiser should:
- Ohio's triennial update process requires county auditors to review property values:
- In Ohio, an appraiser is required to use USPAP's 'Competency Rule,' which requires the appraiser to:
- What is the significance of land residual in highest and best use analysis?
- When appraising an older historic home in a Cleveland neighborhood, the appraiser finds significant physical deterioration. This is classified as:
- What is the income multiplier method for valuing small residential rental properties?
Practice More Ohio Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Ohio Quiz →