Property Valuation
The highest and best use of a property in Virginia appraisal is defined as the use that is:
AApproved by the locality's comprehensive plan
BLegally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CThe current use of the property
DThe use that produces the most tax revenue for the locality
Explanation
Highest and best use is the reasonably probable use that is legally permissible, physically possible, financially feasible, and that results in the maximum value of the property.
Related Virginia Property Valuation Questions
- In Virginia, the appraisal process step that involves defining the problem, identifying the real property, and determining the purpose of the appraisal is called:
- An appraiser uses the 'income capitalization approach' and determines the capitalization rate by the 'band of investment method.' This method is based on:
- A Virginia appraiser determines that a comparable sale occurred under 'atypical motivation' — the seller was under severe financial distress. This sale is considered:
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- In the cost approach, the term 'functional obsolescence' refers to:
- In Virginia, the appraisal approach most commonly used for single-family residential properties is the:
- An appraiser is using the cost approach to value a Virginia home. The land is valued at $50,000, the reproduction cost of the structure is $200,000, and depreciation is estimated at $30,000. What is the indicated value?
- In Virginia real estate appraisal, the 'scope of work' determination is made by the:
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