HIGHEST AND BEST USE

Highest and best use is defined in the Appraisal Institute's The Appraisal of Real Estate, Ninth Edition, as 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.

The highest and best use of a specified parcel of land is largely determined by the competitive forces with the property's market. Accordingly, the analysis of highest and best use is an economic study of market forces focused on the subject property.

The highest and best use of the site is analyzed in two ways: 1) as though vacant and available for development, and 2) as presently improved. The highest and best use of the site as if vacant and available for development may be different from the highest and best use as improved.

Following is a discussion of the highest and best use of the subject property.

Highest and Best Use, As If Vacant: Zoning is an important consideration in estimating the highest and best use of any site since this represents what is legally possible. The subject is currently zoned Residential use.

The second requirement which must be met by all legally permissible uses is that they be physically possible. The subject site is slightly irregular in shape and the topography is generally level at road grade. The subject land does not appear to be in 100 year flood plain. The site has frontage and visibility on Far Hills Avenue. Access, exposure, and visibility are considered average. All public utilities are available and, based on the physical characteristics of the site, a legal permissible residential use could achieve reasonable utilization of the entire tract.