SAEE Highest and Best Use Analysis 2

Question 1

Which of the four tests of highest and best use addresses whether a use is permitted by zoning, building codes, and private restrictions?

Accepted Answer

Legally permissible

Answer

Physically possible

Answer

Financially feasible

Answer

Maximally productive

Question 2

A parcel can legally and physically support a 10-unit apartment building, but construction costs exceed the projected value. Which test does this use fail?

Accepted Answer

Financially feasible

Answer

Legally permissible

Answer

Physically possible

Answer

Maximally productive

Question 3

Highest and best use analysis is typically performed for both the site as though vacant and the:

Accepted Answer

Property as improved

Answer

Neighboring parcels

Answer

Comparable sales only

Answer

Lender's collateral pool

Question 4

When the value of a property as improved is less than the land value minus demolition cost, the indicated action is usually to:

Accepted Answer

Demolish the existing improvement

Answer

Renovate the improvement

Answer

Refinance the property

Answer

Subdivide the parcel

Question 5

Which factor is part of the physically possible test?

Accepted Answer

Soil load-bearing capacity

Answer

Local zoning category

Answer

Mortgage interest rates

Answer

Property tax rate

Question 6

Highest and best use must result in the highest:

Accepted Answer

Land or property value

Answer

Building height

Answer

Population density

Answer

Lot coverage

Question 7

An interim use is best described as a use that:

Accepted Answer

Is temporary until a higher use becomes feasible

Answer

Violates zoning permanently

Answer

Is the maximally productive use forever

Answer

Cannot generate any income