Property Valuation
The 'highest and best use' of a property is defined as the reasonably probable use that is:
ACurrently permitted by zoning
BLegally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CMost desired by the current owner
DThe use that produces the highest gross income
Explanation
Highest and best use is the use that is legally permissible, physically possible, financially feasible, and maximally productive (produces the highest land value). All four criteria must be met.
Related Oklahoma Property Valuation Questions
- When using the sales comparison approach, an appraiser finds a comparable that sold for $300,000. The comparable has a 2-car garage worth $10,000 but the subject property does not. The appraiser should:
- Paired sales analysis in Oklahoma appraisal is used to:
- The Oklahoma City and Tulsa real estate markets are often referred to as:
- The principle of anticipation in appraisal holds that value is:
- A recently sold comparable property is 200 square feet larger than the subject property. If the market indicates a value of $75 per square foot, what adjustment should the appraiser make to the comparable?
- The income capitalization approach to value is most appropriate for valuing:
- The term 'highest and best use' in appraisal means the use that is:
- Which appraisal approach is most commonly used to value single-family residential properties?
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