Term
| Principal of Consistent Use |
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Definition
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improvements must be valued on the basis of the land's highest and best use
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Term
| Current Definition of Highest and Best Use |
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Definition
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The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.
- Legal permissibility
- Physical possibility
- Financial feasibility
- Maximum productivity
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Term
| What is a probelm with the current definition? |
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Definition
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lead s the reader to believe that it makes no difference whether it is physically possible or financially feasible as long as it is legally permissible...this does not allow for speculation in re zoning
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Term
| What is the proposed new definition? |
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Definition
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Probable use of land or improved property-specific with respect to user and timing of the user-that is adequately supported and results in the highest present value
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Term
| When applying the principal of substituion, what must be considered? |
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Definition
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risk that construction cost is higher than anticipated
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Term
| What is the differenc between investors and entrepreneurs? |
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Definition
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Entrepreneurs-Build
Investors-Buy
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