Ch 16: Highest and Best Use Analysis Chapter 16 Ch 16: Highest and Best Use Analysis

Fundamentals of Highest and Best Use (HBU) Generally, the HBU is the existing use, “as improved’” because it is costly to sacrifice that use, tear down and rebuild for a different use. Read “Continuation,” p. 164. The Four Tests for rebuilding to a new (proposed) use. Physically possible – the proposed use must fit on the site; soil must support the weight. Legally permissible – zoning, setback requirements, deed restrictions and the like must allow the new use. Financially feasible – the new use must be profitable. Maximally productive – the one of all possible financially feasible uses that produces the highest value for the site. Chapter 16

Review exercises are strongly recommended Chapter 16