Ch. 16 Highest & Best Use Analysis
Question 1.
Highest and best use analysis is required in: a. All appraisals b. Value-in-use appraisals c. Investment value appraisals d. Market
value appraisals
ANSWER
d. Market value appraisals
Question 2.
Highest and best use analysis requires an estimate of the use as though vacant and as improved to: a. Estimate the value of the
improvements b. Ensure that appraisers recognize that the property could be worth more without the buildings than with them c.
Estimate any functional obsolescence caused by inappropriate improvements d. All of the above
ANSWER
d. All of the above
Question 3.
Highest and best use of the site as though vacant: a. Is required in all market value appraisals of real property b. May require a
change in zoning classification, if possible c. Assumes the site is vacant or could be made vacant by demolishing the improvements
d. All of the above
ANSWER
d. All of the above
Question 4.
Which of the following is not a criterion for highest and best use? a. Legally permissible b. Physically impossible c. Financially
feasible d. The maximum size improvement
ANSWER
d. The maximum size improvement
Question 5.
The test of legal permissibility includes all of the following requirements except: a. Deed and plat restrictions b. Zoning requirements,
building codes, and historic district controls c. Compliance with lease provisions d. Compliance with supply and demand criteria
ANSWER
d. Compliance with supply and demand criteria
Question 6.
Common interim uses include: a. Surface parking lots b. High-rise parking lots c. Small office buildings with short leases d. New car
automobile dealerships
ANSWER
a. Surface parking lots
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Question 1.
Highest and best use analysis is required in: a. All appraisals b. Value-in-use appraisals c. Investment value appraisals d. Market
value appraisals
ANSWER
d. Market value appraisals
Question 2.
Highest and best use analysis requires an estimate of the use as though vacant and as improved to: a. Estimate the value of the
improvements b. Ensure that appraisers recognize that the property could be worth more without the buildings than with them c.
Estimate any functional obsolescence caused by inappropriate improvements d. All of the above
ANSWER
d. All of the above
Question 3.
Highest and best use of the site as though vacant: a. Is required in all market value appraisals of real property b. May require a
change in zoning classification, if possible c. Assumes the site is vacant or could be made vacant by demolishing the improvements
d. All of the above
ANSWER
d. All of the above
Question 4.
Which of the following is not a criterion for highest and best use? a. Legally permissible b. Physically impossible c. Financially
feasible d. The maximum size improvement
ANSWER
d. The maximum size improvement
Question 5.
The test of legal permissibility includes all of the following requirements except: a. Deed and plat restrictions b. Zoning requirements,
building codes, and historic district controls c. Compliance with lease provisions d. Compliance with supply and demand criteria
ANSWER
d. Compliance with supply and demand criteria
Question 6.
Common interim uses include: a. Surface parking lots b. High-rise parking lots c. Small office buildings with short leases d. New car
automobile dealerships
ANSWER
a. Surface parking lots
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