Property Valuation
Highest and best use of a Utah property is defined as the reasonably probable use that is:
AThe use currently authorized by zoning only
BLegally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CThe use preferred by the neighboring properties
DThe use generating the most tax revenue for the county
Explanation
Highest and best use is the use that is legally permissible, physically possible, financially feasible, and produces the maximum value. It is a cornerstone concept in appraisal.
Related Utah Property Valuation Questions
- The principle of balance in Utah real estate valuation states that:
- In Utah, a retrospective appraisal establishes value as of:
- A Utah appraiser who is reviewing a property in an area with limited sales may need to expand the geographic search area for comparables to find:
- Surplus land on a Utah property is:
- A capitalization rate for a Utah commercial property in a high-demand area like downtown Salt Lake City tends to be:
- A comparable sale used in a Utah appraisal should ideally be:
- In Utah, the income capitalization approach uses the overall capitalization rate (OAR). The OAR is derived from:
- A Utah appraiser using the income approach divides NOI by the cap rate to find the:
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