Highest & Best Use Analysis

Front 1

Alternative use

Back 1

a use other than that currently used or contemplated

Front 2

Consistent use

Back 2

value the land under its HBU & the improvements under their contribution to that use

Front 3

Use value

Back 3

value the land & improvements according to the defined use

Front 4

Criteria variable

Back 4

an input into a e.g. an income approach to compute values for a use to test for feasibility

Front 5

Excess land

Back 5

land that is too much for the current use but economically separable & salable

Front 6

Existing use

Back 6

use that a property is being put to that use as of the date of the appraisal, regardless of HBU

Front 7

Feasibility

Back 7

the likelihood that a property will satisfy explicit objectives

Front 8

Four criteria

Back 8

physically posible, legally permissible, financially feasible, maximally productive

Front 9

Highest & best use

Back 9

the use that produces the highest dollar value or return

Front 10

HBU of land/site as though vacant

Back 10

the use that produces the highest dollar value or return to the land if the property were vacant

Front 11

HBU of property as improved

Back 11

the use that produces the highest dollar value or return to the property given the existing improvements

Front 12

Ideal improvement

Back 12

one that would maximize the land value if put to that use

Front 13

Intensity of use

Back 13

density of use or the size of a building or use of utilities on a site

Front 14

Interim uses

Back 14

uses that are temporary; a use that does not match the ideal use of land & is toward the end of its economic life

Front 15

Land residual

Back 15

valuing land by separating net income into return to the building & return to land, then dividing the income to land by a rate to land

Front 16

Legally nonconforming uses

Back 16

uses that may legally be continued, but do not conform to current legal requirements & could not be built legally new as of a given date

Front 17

Legally permissible

Back 17

allowed by all laws

Front 18

Maximally productive

Back 18

the use that maximizes the value of land or property

Front 19

Multiple uses

Back 19

more than one use

Front 20

Physically possible

Back 20

uses that could meet all physical constraints

Front 21

Potential use

Back 21

a use that land or property could be put to that use

Front 22

Single uses

Back 22

property that has only one identifiable use

Front 23

Surplus land

Back 23

too much land for a given use that is not salable

Front 24

Use density

Back 24

density of use or the size of a building or use of utilites on a site

Front 25

Value in use

Back 25

a value based upon a predetermined use regardless of HBU

Front 26

Criteria in HBU analysis

Back 26

1. Legally permissable
2. Physically possible
3. Financially feasible
4. Maximally productive

Front 27

HBU as improved

Back 27

1. No capital expenditures
2. Capital expenditures required

Front 28

HBU of land as though vacant

Back 28

Highest land value; highest residual land value