Appraiser Nina Patel is screening alternative uses for a corner parcel before concluding its highest and best use. Which of the following is NOT one of the accepted tests for highest and best use?
Correct Answer
B) Most recently sold in the market
This is the exception because the accepted highest and best use tests ask whether a use is legally permissible, physically possible, financially feasible, and maximally productive. Whether a use is 'most recently sold' is not one of those tests.
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Previous Question
A newly built luxury home is surrounded by several older, much smaller houses on the same block. Which appraisal principle suggests the luxury home's value may be pulled downward by its surroundings?
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A vacant site is zoned for either a small retail building or a mid-rise apartment project. Both uses are physically possible, but only the apartment project would support the land and development cost while producing the stronger return. Under highest and best use analysis, which use should the appraiser favor?