Section 16

Highest and Best Use

Appendix F-1, page 176

The Highest and Best Use section focuses on answering the four tests of highest and best use and identifying if the present or proposed use is the highest and best use. When the agreed upon scope of work for a given appraisal assignment specifies adherence to published guidelines by the GSEs or other identified secondary market participants, refer to that entity's policies on identification of highest and best use prior to making a determination to ensure compliance with those guidelines.

This section always displays and provides space for additional commentary and exhibits.

Addressing highest and best use as if vacant land or other points of highest and best use may be done utilizing the Highest and Best Use Commentary (16.005).

URAR form snippet

Highest and Best Use

Report Field ID Report Label When to Include Allowable Answers / Format Definition / Additional Guidance
16.000 Legally Permissible Always required Yes | No Indicates whether the current improvements (or the proposed improvements if appraised "subject to") of the property are legally allowed, with particular attention to zoning.
16.001 Physically Possible Always required Yes | No Indicates whether the current improvements (or the proposed improvements if appraised "subject to") of the property are physically possible.
16.002 Financially Feasible Always required Yes | No Indicates whether the current improvements (or the proposed improvements if appraised "subject to") of the property are financially feasible.
16.003 Maximally Productive Always required Yes | No Indicates whether the current improvements (or the proposed improvements if appraised "subject to") of the property are maximally productive.
16.004 Is the highest and best use of the subject property as improved (or as proposed per plans and specifications) the present use? Always required Yes | No Highest and Best Use
After consideration of all four tests, indicates whether the present or proposed use is the highest and best use of the site.

Highest and Best Use Commentary#

Highest and Best Use Commentary

Report Field ID Report Label When to Include Allowable Answers / Format Definition / Additional Guidance
16.005 Highest and Best Use Commentary Required if any answer in this section is No, or if relevant. Free-form - When an answer is No, describe the evidence and support for the reasons why.
- Additional commentary may be provided to include details and other information relevant to this section.

Highest and Best Use Exhibits#

All photos or images related to the Highest and Best Use section are displayed in the Highest and Best Use Exhibits subsection. If there are no photos or images, this subsection does not display.

Highest and Best Use Exhibits

Report Field ID Report Label When to Include Allowable Answers / Format Definition / Additional Guidance
See iGuide Highest and Best Use Exhibits If applicable Photos or images Photos or images relevant to the Highest and Best Use section may be provided, which display in Highest and Best Use Exhibits. Provide a caption to identify each photo or image.