Tests of Highest & Best Use in Real Estate

Instructions:

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question 1 of 3

What test would Debbie the developer use to determine whether her proposed 200,000 Sq. Ft. warehouse can be built on her 20 acre parcel?

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1. When applying the Legal Use test as directed by the four-part Highest and Best Use test, proper due diligence requires that the investor DOES NOT consider:

2. Don Developer has determined that his proposed grocery store is physically able to be built on his parcel, is legally permitted, and is financially feasible. What is Don's last step of the four-part test to determine his property's Highest and Best Use?

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About This Quiz & Worksheet

The quiz/worksheet combo will test your understanding of Highest and Best Use Test in real estate appraisals. Some of the topics you will be assessed on include types of tests, why using the Highest and Best Use Test is beneficial, and the four-part test.

Quiz & Worksheet Goals

Use this printable worksheet and quiz to check your knowledge of:

  • What test is used to determine whether a large warehouse can be built on a 20-acre parcel
  • What investors not consider what when applying the Legal Use test
  • The last step of the four-part test to determine a property's Highest and Best Use
  • The goal of the Financially Feasible Test
  • Why a Highest and Best Use determination is beneficial

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related Highest and Best Use test lesson
  • Information recall - access the knowledge you've gained regarding the steps of the four-part test
  • Knowledge application - use your knowledge to answer questions on the ultimate goal of the Financially Feasible Test

Additional Learning

Continue your studies on tests of highest and best use by reviewing the lesson Tests on Highest & Best Use in Real Estate. You'll be able to study more about:

  • Maximum productivity
  • Property valuation methods
  • What determines if a planned use is legally permitted
  • ROI
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