Contemporary Highest and Best Use Issues

Course overview

This four hour seminar provides continuing education for Michigan appraisers and assessors. It is targeted primarily for certified general appraisers and assessors. A background in the application of the income approach and familiarity with the operation of a financial calculator (HP12C or equivalent) is recommended. The definition of highest and best use is reviewed including USPAP citations in Standards 1-3, 2-2 and 5-3. Court cases where highest and best use was an issue are identified. Special highest and best use issues are discussed including legal non conforming uses, interim uses, multiple uses, special purpose properties and speculative uses. Actual examples of changing highest and best use by property sector (retail, office, industrial, residential and special purpose) are presented. Participants are cautioned that the materials and examples developed in this seminar are for educational purposes. It may not be appropriate to specific appraisal problems encountered in your daily appraisal practice.