Highest and Best Use. 33 Valuation Analysis
Highest and Best Use. The existing subject multifamily residential improvements represents the highest and best use of the subject property as of the date of this analysis.
Highest and Best Use. 1. H&B Use is defined as: The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. The Dictionary of Real Estate Appraisal, 6th ed., Appraisal Institute, Page 109 With the current waterfront zoning regulations, as well as location directly along the primary traffic line of cruise ship passengers, the current use of the property being leased to a commercial restaurant is felt to be the highest and best use. Retail use is not allowed in this area unless it is related to a maritime use that requires or benefits from a shoreline location. The adjacent property has a similar marine-related restaurant use.
Highest and Best Use. District and Tenant agree that through the term of the Lease, the Housing and District Use Facility/STEAM Lab are the highest and best use of the Property, providing the greatest public good and the least private injury for the community. As such, the Parties agree to contest any full or partial condemnation of the leased premises so that the Housing and District Use Facility/STEAM Lab can reasonably continue.
Highest and Best Use. 46 VALUATION................................................................ 54 CORRELATION.............................................................. 112
Highest and Best Use. Highest and best use is defined as the reasonably probable and legal use of vacant land or an improved property which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability. Before
Highest and Best Use. In our opinion, the highest and best use of the subject is for use by as allowed with the RC, Rural Conservation zoning regulations. Because the minimum lot size is 2.5 acres for a dwelling and the subject contains only 1.249± acres, a Variance will be necessary to allow construction of a dwelling on the site. An on-site well and septic system would also have to be approved. Thus, if engineering proves that an on –site well and septic system would not be obtainable and a/or a Variance could not be obtained, development of the site may possibly not possible. For purposes of this appraisal, we have assumed that a dwelling would be allowed on the site. INDICATED EXPOSURE AND MARKETING TIME About least one year. COMMENTS ON VALUATION The Sales Comparison Approach was considered as the only applicable approach to value, as the subject site is vacant ground. The Income Capitalization and Cost Approaches were considered, but were not applicable. SALES COMPARISON APPROACH In the Sales Comparison Approach, similar properties are related to the subject property. Adjustments for dissimilarities are made, leading to an indication of the price at which the property being appraised could be expected to sell. For the valuation, we have researched the market for sales and offerings of similarly zoned parcels. The comparable land sales and offerings presented for this analysis are considered to be the best ones available to compare to the subject. These sales and offerings are summarized on the following page. SUMMARY OF COMPARABLE LAND SALES SALE
Highest and Best Use. 1. The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. The Dictionary of Real Estate Appraisal, 6th Edition, Appraisal Institute, page 109 The highest and best use scenarios for the subject property, if it were vacant, include a wide variety of industrial or commercial enterprises since the site is zoned industrial. It has good visibility by the inbound visitors from Canada and Alaska’s interior along with northbound passengers disembarking from the ferry terminal and in some cases, private vessels or cruise ships. The site is located between the bridge and the intersection with Dyea Road. Dyea Road serves a growing population on the hillside overlooking the downtown area of Skagway as well as providing access to the historic areas of the Chilkoot Trail and more rural housing near Dyea. As vacant, commercial uses allowed within the industrial zone would meet the highest and best use. As improved, the subject meets the definition of highest and best use.
Highest and Best Use. Describe the CONSULTANT’s opinion of the highest and best use of the Subject Parcel. For improved properties, the analysis of highest and best use should reflect the subject as though bare, vacant and available as well as improved. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. In the context of market value, highest and best use is defined as: "The reasonable and probable use that will support the highest present value, as defined as of the appraisal effective date." Alternatively, highest and best use is that use, from among reasonable, probable and legal alternative uses, found to be physically feasible, and which results in the highest land value. It should be recognized that in cases where a site has existing improvements on it, the highest and best use may be determined to be different from the existing use. The appraiser's analysis of highest and best use considers the following factors: POSSIBLE USE To what use is the property physically suited? PERMISSIBLE USE What legally permissible use would be allowed, subject to zoning and deed restrictions? FEASIBLE USE What possible and permissible uses will produce any net return to the market (potential investor)? PROBABLE USE The use must be probable, not speculative or conjectural. There must be profitable demand for such use and it must return to the land the highest net return for the longest period of time. HIGHEST & BEST USE Among the reasonable uses, those uses which will produce the highest net return or the highest present worth. Possible and legally permissible uses are determined primarily by the underlying zoning and Comprehensive Plan designation.
Highest and Best Use. Appraiser's opinion as to the highest and best use for the property, unless instructed otherwise by EPWater.
