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<br />HIGHEST AND BEST USE DEFINITION
<br />
<br />The highest and best use of the subject property is for single family residential use. We
<br />have been informed by the owner that the existing utility easement across the subject sites could
<br />be adjusted. to accommodate the construction of new dwellings on the sites if the existing
<br />improvements were removed.
<br />
<br />The following definition of Highest and Best Use is taken from Real Estate Appraisal
<br />Terminology, Byrl N. Boyce, Cambridge, M.A.: Ballinger, 1984, p.127.
<br />
<br />Thatreasonable and probable use that will support
<br />the highest present value, as defined as of the effective date of the
<br />appraisal. Alternatively, that use, from among reasonably probable
<br />and legal alternative' uses, found to be physically possible,
<br />appropriately supported, fmancially feasible, and which results in
<br />highest land value.
<br />
<br />The definition. . . applies specifically to the highest and
<br />best use of land. It is to be recognized that in cases where a site has
<br />existing improvements on it, the highest and best use may very well
<br />be determined to be different from the existing use. The existing
<br />use will continue, however, unless and until land value in its highest
<br />and best use exceeds the total value of the property in its existing
<br />use.
<br />
<br />The four tests of Highest and Best Use are those outlined above, i.e. physicallypos.sible,
<br />legally permissible, financially feasible, and maximally productive.
<br />
<br />Highest and Best Use for the subject property is examined on an "as vacant" and "as
<br />improved" basis. The criteria for the Highest and Best Use for the subject are set forth in The
<br />Appraisal of Real Estate, Twelfth Edition, Appraisal Institute, 2001, p.p. 305-327.
<br />
<br />The following tests must be met in estimating the Highest and Best Use ofa vacant parcel:
<br />there must be a, profitable demand for such use and it must return to the land the highest net return
<br />for the longest period of time. These tests have been applied to the subj ect site and are discussed
<br />as follows.
<br />
<br />AS THOUGH VACANT
<br />
<br />'"'<'~~'\"'~:':':""<"C' '
<br />
<br />Physically Possible - One of the first constraints imposed on the possible use of a site, as
<br />if vacant, is dictated by its physical characteristics. Size, shape, area and terrain affect the uses
<br />for which a site may be developed. Utility of a parcel may depend on its frontage and depth.
<br />Considerat~gn mustalso be made of,its potentiaI use rather than. its aCt:lIa111se.. The m~~ffi1~~R~~<"1:~,:~"..;;;;';'~:;;fi';;,~,;:o;li
<br />';'0 fthe land "Nrrs1:' Bb'; det~li:niried :",~",;,';:"h~Sw.>~;:,'::'c:.,;:.c;;'c:,,,"""':',."';.~~.,.";,:."~..,,~,,:,,~",i~,:i,';',,,,:,,, :";.;....,,~,i"=,..,. .,..0 " ".
<br />
<br />As noted in the "Site Data" section of this report, the two sites contain approximately
<br />23,184 square feet each. The topography of the sites is generally level with a minor slope tothe
<br />lake.
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