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Word of the day

Highest and Best Use

An appraisal term meaning that reasonable use, at the time of the property appraisal, which is most likely to produce the greatest net return to the land and/or the building over a given period of time. The use must be legal and in compliance with regulations and ordinances within the police power of the county and the state, including health regulations, zoning ordinances, building code requirements, and other regulations. The highest and best use is determined by evaluating the quantity and quality of income from various alternative land uses. Net return normally is interpreted in terms of money, although consideration may be given to such things as amenities.

For example, vacant land in a central business district currently used as a parking lot may or may not be employed at its highest and best use, depending on whether the surrounding market is ready for further commercial development. A gas station site may be more effective as a fast-food facility or a dry cleaner.

For appraisal purposes, land is always valued as though vacant and available for development to its highest and best use. The estate taxes and the real property taxes paid by an owner of unimproved real estate are usually based on the highest and best use of the land rather than the use to which it is actually devoted.

Association of the day

Pasadena Foothills Association of REALTORS

REALTOR Association Building of the Day...Pasadena Foothills Association of REALTORS.

Buildings are part of the culture of organizations. Think about government buildings, school buildings, banks...buildings impart a message to the community and its members. REALTOR Association Buildings are part of our REALTOR Culture.

When is the last time you visited your association? Have you ever visited other association buildings?

Quote of the day

What happens is not as important as how you react to what happens

How do you react to adversity? Life is full of stops and starts, frustrations and distractions. But don't let these daily confusions divert you from the excellent potential that is available to you every day. When you do encounter adversity, remember that keeping a cool head is always the right way to go. There's a solution to every problem, but's impossible to see it if you blow your top. 

Question of the day

Under an exclusive agency arrangement, the broker has a fiduciary arrangement with?

(A) The seller  
(B) The buyer  
(C) The seller and buyer  (D) The seller primarily and secondarily to the buyer
 



Answer:  (A)  The listing agreement creates an agency relationship between the broker and seller, referred to as a fiduciary relationship.
 
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