Real Estate

Enrichment Exercise:

Topic:Perform a highest and best use analysis on two properties: (1) a residential property you are familiar with (for example, a home you own or an apartment complex where you live), and (2) a commercial property you are familiar with, such as the supermarket where you shop. In your essay, discuss the four tests used to determine highest and best use. Is each property currently at its highest and best use?

High and best use is an analysis of utilization of land and property ,this analysis aims at finding out whether land is used in a productive way , land can be used for residential or commercial purposes , however allocation of use mainly depends on productivity and the availability of supportive infrastructure and population .

I take the example of our home to analyze best use , the property is located near a road whereby all the other neighboring land is used for residential purposes , and there are also other supportive infrastructures that support the piece of property to be used as a residential area .The land is best utilized because the area is not densely populated , it has access to the road network and that it is more secure because other people already live in the area . The other factor is that it is located some miles away from the town making it less noisy .If this property was turned into a commercial property whereby it is converted into a supermarket then it would not be best used , for one reason is because the area is not densely populated and therefore less consumers would shop , the area is far from other supportive industries and services and therefore it would be hard to get supplied and finally the consumers would find it inconvenient to move long distances to come and shop .

Commercial properties In the commercial property. I take the supermarket near my area , this supermarket is located in town where more consumers shop , this is the best usage of the property in that it is a large building enabling the...