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Highest and Best Use?

Discussion in 'Urgent - Help Needed' started by loveappraising, Feb 28, 2006.

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  1. loveappraising

    loveappraising New Member

    0
    May 29, 2003
    Professional Status:
    Licensed Appraiser
    State:
    Virginia
    Senerio:
    50 year old house sits on a 1.43 acres lot. It is currently zoned for R3 (3 residential for 1 acre lot). Lot is worth 2x as much as the dwelling based on the tax assessment amount.
    The lot itself could be worth alot more if subdivided and especially if a dwelling were to occupy the empty lot.
    In knowing this, would it be approriate to check that the highest and best is currently NOT it's best use?
    If so, what would be the best way to approach this and what would I need to complete the next step?
    Or forgive me, but do I mark YES as it is the highest and best use to avoid any further complications or in other words, would I be "opening a whole new can of worms".

    PLEASE ADVISE!!!
     
  2. Jerry Bone Jr

    Jerry Bone Jr Senior Member

    0
    Feb 23, 2004
    Professional Status:
    Licensed Appraiser
    State:
    Oregon
    Subdivision analysis is beyond my knowledge & expertise. Yours too, perhaps?
     
  3. loveappraising

    loveappraising New Member

    0
    May 29, 2003
    Professional Status:
    Licensed Appraiser
    State:
    Virginia
  4. Fred

    Fred Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Retired Appraiser
    State:
    Virgin Islands
    You can’t answer the question on what the assessor says it’s worth, but what you say it’s worth.
    It’s not whether the land as though vacant is worth more than the “building” (which doesn’t really have a value), but whether the land is worth more than the site as improved.
     
  5. Kenneth J Jones

    Kenneth J Jones New Member

    0
    Feb 8, 2006
    Professional Status:
    Certified General Appraiser
    Are you a "box checker" or an appraiser?

    If you're an appraisr, you MUST undertake a highest and best use analysis and apply the 4 tests to form an opinion of the H&BU of this property.

    What ever the outcome is the outcome.

    An appraiser does not undertake an assignment to "PLEASE" the client. An appraiser provides an INDEPENDENT EXPERT OPINION.

    If an appraiser either can't or won't do this for fear of retribution by the client, that person should do something else for a living.

    Prove the H&BU with FACTS and a REASONABLE assessment of those FACTS. That's what an appraiser is SUPPOSED to do.

    Regards,
    Ken Jones
     
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