High And Best Use . The Four Tests of Highest and Best Use Appraisal Buzz So, a property with high usage will simultaneously lead to the highest value. Highest and best use (or highest or best use; HBU) is a concept in real estate appraisal that originated with early economists such as Irving Fisher, who conceptualized the idea of maximum productivity
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This deeper approach not only considers the current market but also projects potential developments and uses that could enhance the property's value over time To illustrate how highest and best use works in practice, consider an old 1920s brick building in the central business district of a small city
The Four Tests of Highest and Best Use Appraisal Buzz Business and residents moved away from the area, and its current use as retail space may no longer be the highest and best use of the property. Business and residents moved away from the area, and its current use as retail space may no longer be the highest and best use of the property. Applying Highest and Best Use to an Existing Structure
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