SAEE SAEE - Highest and Best Use Analysis Questions and Answers 5

Question 1

A property subject to a deed restriction limiting use to single-family residential cannot qualify as HBU for commercial development even if the market strongly supports commercial use. This illustrates which HBU test?

Accepted Answer

Legally permissible

Answer

Deed restrictions are private legal limitations that must be considered in the legally permissible test, eliminating uses that violate them even if commercially attractive.

Question 2

When multiple uses each pass all four HBU tests, the final step is to select the use that:

Accepted Answer

Produces the highest present value of the land

Answer

Among all feasible uses, the one that produces the highest residual land value is selected as the maximally productive and therefore highest and best use.

Question 3

An appraiser finds that a site's soil conditions cannot support a multi-story structure due to poor load-bearing capacity. This finding eliminates which category of uses from HBU consideration?

Accepted Answer

Uses requiring deep foundation systems at prohibitive cost

Answer

Poor soil bearing capacity makes high-rise or heavy foundation structures physically impractical or cost-prohibitive, eliminating them from the physically possible test.

Question 4

Excess land in HBU analysis refers to:

Accepted Answer

Land that can be separated from the main parcel and sold or developed independently

Answer

Excess land is the portion of a site beyond what is needed for the existing or HBU improvement, and it has separate value because it can be sold or developed independently.

Question 5

In the context of HBU, 'plottage' refers to:

Accepted Answer

The incremental value created when two or more parcels are combined into one larger parcel

Answer

Plottage is the added value resulting from assemblage—combining parcels creates greater utility or development potential than the sum of the individual parcels' values.

SAEE Test Practice Test

SAEE Test Practice Test

SAEE SAEE - Highest and Best Use Analysis Questions and Answers 5