Property Valuation
The 'highest and best use' of a property is defined as the use that is:
AThe current use of the property
BLegally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CThe most environmentally friendly use
DThe use that generates the least neighborhood conflict
Explanation
Highest and best use is the reasonably probable use that is legally permissible, physically possible, financially feasible, and that results in the highest value for the property.
Related Tennessee Property Valuation Questions
- In Tennessee, a certified general appraiser is qualified to appraise:
- Depreciation in appraisal refers to:
- The 'sales comparison approach' to value is most reliable when:
- A Chattanooga home's market value is $275,000. The replacement cost of improvements is $230,000, the lot value is $55,000, and total depreciation is $30,000. What is the cost approach value?
- In the income approach, effective gross income (EGI) is calculated as:
- In Tennessee, which appraisal approach would be most appropriate for a new public school building?
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