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Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.
• In real estate, the highest and best use of a specific parcel of land or
an improved property is not determined through subjective analysis
by a property appraiser; but rather, it is a use shaped by the
competitive forces within the market where the property is located.
• A highest and best use analysis indicates that the value of the
property is directly proportional to the use of the property. This lets a
potential purchaser, and therefore, the appraiser know where the
highest profit potential lies and with what use of the property.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.
• The most likely and profitable use of the site "as if vacant" under the
requirements set forth above and,
• If a property is "already improved", it is the use that should be made
of the property to maximize value for non-income producing
properties or, maximize net operating income on a long term basis
for investment properties.
• As long as the value of the property "as improved" is greater than
the value of the site as "if vacant", the highest and best use is usually
the "improved" property.
• Once the value of the vacant land exceeds the value of the
improved property (including demolition costs), highest and best
use will usually dictate that improvements be demolished.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011
PHILIPPINE ASSOCIATION OF REALTY APPRAISERS, INC.
• For assessors, HIGHEST AND BEST USE may not play a major role in the
appraisal of real property for taxation purposes.
• Sec. 198 (b) provides: Real property shall be classified for assessment
purposes on the basis of its actual use.
Comprehensive Real Estate Property Appraisal Seminar and Training (CREASAT) 2011