Property Valuation
What does 'highest and best use' mean in the context of Oregon real estate appraisal?
AThe use that generates the most traffic or foot traffic
BThe legally permitted, physically possible, financially feasible, and most profitable use of a property✓ Correct
CThe use specified in the property's current zoning classification
DThe use preferred by the property owner
Explanation
Highest and best use is a fundamental appraisal concept — it identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. Appraisers analyze highest and best use as vacant land and as improved, since the improvement may or may not represent the highest and best use of the site.
Related Oregon Property Valuation Questions
- The principle of 'contribution' in real estate appraisal states that:
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- Functional obsolescence in a property is BEST illustrated by:
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- An Oregon appraiser performing a drive-by (exterior only) appraisal is completing which type of appraisal?
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