Property Valuation
The principle of highest and best use in real estate valuation means:
AThe property must be used for the most intensive purpose possible
BThe legal, physically possible, financially feasible, and maximally productive use of a property✓ Correct
CThe use that generates the highest gross income
DThe use permitted under current zoning regardless of alternatives
Explanation
Highest and best use is defined as the reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and results in the highest value.
Related Utah Property Valuation Questions
- In Utah's appraisal process, the final step of reconciliation requires the appraiser to:
- A 'drive-by' or 'exterior-only' appraisal of a Utah property is typically ordered when:
- Market conditions adjustments in a sales comparison appraisal account for:
- When comparing sales in the sales comparison approach, adjustments are made to the:
- A before-and-after appraisal in Utah is used in:
- An appraisal review in Utah may be required by lenders to:
- The income approach to value is most commonly used for which type of Utah property?
- The income approach yields the highest value indication when:
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