Highest and Best Use of (the moment has been prepared) is defined as the use of the most optimal and may be from a property, which is physically possible, have been considered adequate, legally permissible, financially feasible, and generate the highest value of the property.
In application to give the possibility to assess the damage to estimate the impact and building setback, the feasibility of rehabilitation and renovation, and various other situation assessment.
The land is a permanent asset, but the development is over the limited age. With The unique and can not moving every field of real estate enjoys a unique location. Permanently from the earth to provide the understanding that their existence is beyond the age of the building and all the things that are above. With other conditions in certain properties as the combination of land and buildings, which usually Evaluation to Estimation Market Value by considering the Highest and Best Use of appropriate development that (the moment has been prepared as Improved).
Unique natures of the land determine the optimum usefulness. If the land were considered separately from the building that stood above, the economic principle requires that the building of the assessed contributions to the total value of the property on the principle that unity is one that can not be separated between one and other
Market value of the land based on the concept of "Highest and Best Use", which reflects the usefulness and permanent nature of the land in the context of the market, where the value of the difference between the value of land with a total market value according to the development of the existing (Market Value as Improved)
Use of that is not permitted by law or is not physically possible can not be considered as the moment has been prepared. The use of permitted by law and any possible physical explanation of the need for the Evaluation of adequate consideration of why the use of these fairly possible. The Appraisal/valuer will consider the use of the most feasible and generate the highest value of the property .
In the market conditions that are extreme and the ferment that is very serious imbalance between supply and demand, the Highest and Best Use may be delayed for use in the future. In other situations, where some of the potential use of the Highest and Best can be identified, assessors must consider the use of alternative and the level of income and the anticipated costs in the future. When land use and regulatory changes are in the stage, the Highest and Best Use of the current can be temporary
Performance Evaluation in Valuation Property
Plan visits to direct visit
Key point to get property value
Market Data, appropriate to get market value now?
Management risk on valuation assessment
Quality control and the assignment in valuation
Serving Reports fairness opinion
Limiting conditions and the statement Valuer assessment reports