SAEE Core Valuation Principles 3

Question 1

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

Accepted Answer

The most personally preferred by the owner

Answer

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

Question 2

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

Accepted Answer

Maximum productivity

Answer

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

Question 3

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

Accepted Answer

As if the land were vacant

Answer

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

Question 4

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

Accepted Answer

Legal permissibility

Answer

Zoning governs what uses are legally permitted on a site.

Question 5

If a current improvement no longer represents the highest and best use, its value is best described as suffering from:

Accepted Answer

Functional or external obsolescence reducing contribution

Answer

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

SAEE Test Practice Test