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

The legally permissible test screens uses against zoning, codes, deed restrictions, and other legal limits.

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

A use that costs more than the value it produces fails the financial feasibility test.

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

Appraisers analyze highest and best use both as if vacant and as improved.

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

If land value net of demolition exceeds improved value, the improvement no longer represents the highest and best use and removal is indicated.

Question 5

Which factor is part of the physically possible test?

Accepted Answer

Soil load-bearing capacity

Answer

Size, shape, topography, and soil capacity are physical characteristics affecting what can be built.

SAEE Test Practice Test

SAEE Test Practice Test

SAEE Highest and Best Use Analysis 2