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Core Valuation Principles Flashcards

7 cards from real SAEE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Core Valuation Principles flashcards as text

  1. Highest and best use must satisfy all of the following EXCEPT being:

    Answer: The most personally preferred by the owner

    Highest and best use is the legally permissible, physically possible, financially feasible, and maximally productive use—not personal preference.

  2. Which of the four tests of highest and best use is typically applied LAST?

    Answer: Maximum productivity

    After screening for legality, possibility, and feasibility, the use yielding maximum productivity is selected.

  3. Highest and best use analysis is usually performed on which basis first?

    Answer: As if the land were vacant

    Appraisers typically analyze highest and best use of the land as though vacant, then as improved.

  4. A zoning change that permits commercial use on residential land most directly affects which test of highest and best use?

    Answer: Legal permissibility

    Zoning governs what uses are legally permitted on a site.

  5. If a current improvement no longer represents the highest and best use, its value is best described as suffering from:

    Answer: Functional or external obsolescence reducing contribution

    An improvement that is not the highest and best use contributes less value and may show obsolescence.

  6. Soil that cannot support a high-rise foundation primarily limits which test?

    Answer: Physical possibility

    Site characteristics like soil and dimensions determine what is physically possible.

  7. A proposed use that is legal and possible but cannot generate adequate return fails which test?

    Answer: Financial feasibility

    Financial feasibility requires that a use produce sufficient return to justify it.