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28 Cards in this Set

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Alternative use
a use other than that currently used or contemplated
Consistent use
value the land under its HBU & the improvements under their contribution to that use
Use value
value the land & improvements according to the defined use
Criteria variable
an input into a e.g. an income approach to compute values for a use to test for feasibility
Excess land
land that is too much for the current use but economically separable & salable
Existing use
use that a property is being put to that use as of the date of the appraisal, regardless of HBU
Feasibility
the likelihood that a property will satisfy explicit objectives
Four criteria
physically posible, legally permissible, financially feasible, maximally productive
Highest & best use
the use that produces the highest dollar value or return
HBU of land/site as though vacant
the use that produces the highest dollar value or return to the land if the property were vacant
HBU of property as improved
the use that produces the highest dollar value or return to the property given the existing improvements
Ideal improvement
one that would maximize the land value if put to that use
Intensity of use
density of use or the size of a building or use of utilities on a site
Interim uses
uses that are temporary; a use that does not match the ideal use of land & is toward the end of its economic life
Land residual
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
Legally nonconforming uses
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
Legally permissible
allowed by all laws
Maximally productive
the use that maximizes the value of land or property
Multiple uses
more than one use
Physically possible
uses that could meet all physical constraints
Potential use
a use that land or property could be put to that use
Single uses
property that has only one identifiable use
Surplus land
too much land for a given use that is not salable
Use density
density of use or the size of a building or use of utilites on a site
Value in use
a value based upon a predetermined use regardless of HBU
Criteria in HBU analysis
1. Legally permissable
2. Physically possible
3. Financially feasible
4. Maximally productive
HBU as improved
1. No capital expenditures
2. Capital expenditures required
HBU of land as though vacant
Highest land value; highest residual land value