Find the highest value for your property
The Highest and Best Use considers the property as though vacant and available for development, and as improved. It considers the subject property from legal, physical and financial perspectives to determine what use yields the highest value for the longest time from among alternative uses.
The theory and process of Highest and Best Use essentially works to determine the more profitable and competitive use for the subject site based on four criteria. Within every appraisal exercise that is undertaken by an appraiser, a Highest and Best Use analysis must be completed.
There are four tests which the appraiser must consider when undertaking Highest and Best Use analysis which include the following:
1. Legally permissible
2. Physically possible
3. Financially feasible
4. Maximally productive
These tests are typically considered sequentially with the first two tests being applied in any order, but they both must be applied prior to any test of financial feasibility or maximum productivity.
Appraisers complete Highest and Best use analysis with a focus on three possibilities: continuation of the existing use, modification of the existing use, or demolition and redevelopment of the site. West Central Property Services can help you determine the highest and best use for your property before you commit to the development of a new property or the redevelopment of an existing property or we can confirm that the existing use is representative of its highest and best use.