Use the following to determine the property’s highest and best use as vacant and as improved:…

Use the following to determine the property’s highest and best use as vacant and as improved:

• Existing single-family home value estimated at $350,000
• Local zoning regulations permit either a four-unit rental housing or a small craft brewery to be built on the site.(assume demand supports the need for either option)
• Demolition of the house costs total $80,000
• Construction costs for the rental structure are estimated to be $300,000.
• Estimated value of rental structure is $500,000 upon completion.
• Construction costs for the brewery are estimated to be $450,000.
• Estimated value of brewery is $750,000 upon completion.

The property’s highest and best use as though the site is vacant is

Choose one:

.brewery

4 unit rental

highest best use up to owener

single family home

The property’s highest and best use as improved is

Choose one:

.brewery

4 unit rental

highest best use up to owener

single family home