SAEE Highest and Best Use Analysis 3

Question 1

The correct order in which the four tests of highest and best use are normally applied is:

Accepted Answer

Legally permissible, physically possible, financially feasible, maximally productive

Answer

The tests are typically applied in sequence: legal, physical, financial, then maximally productive.

Question 2

A legally nonconforming use is one that:

Accepted Answer

Was lawful when established but no longer conforms to current zoning

Answer

A legal nonconforming use predates a zoning change and is grandfathered despite not meeting current rules.

Question 3

Which use would most likely be the highest and best use of a corner lot on a busy commercial arterial in a commercially zoned area?

Accepted Answer

A retail convenience store

Answer

Commercial retail typically maximizes value at a high-traffic commercially zoned corner.

Question 4

Consistent use theory requires that land and improvements be valued:

Accepted Answer

On the basis of the same use

Answer

Consistent use theory holds that land and improvements cannot be valued on the basis of different uses.

Question 5

If demand for a particular use does not yet exist but is expected to develop, the property's current highest and best use is most likely a:

Accepted Answer

Speculative or interim use

Answer

When future demand is anticipated, holding the land speculatively or in an interim use can be the present highest and best use.

SAEE Test Practice Test