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Lets revisit the basics: In an H&BU analysis, real estate appraisers determine the most probable use of a property by applying four tests: whether the use is legally permissible , physically possible , financially feasible , and maximally productive. Order doesnt matter for the first two tests, but its essential for the last two.
For grants secured for commercial real estate acquisition or development, appraisal reviews are a must-have. Consider the grantor’s position when considering a disbursement for a mixed-use development, conservation easement, or specialty use property. State laws differ, and the reviewer may need more than one license.
EASEMENTS: An irrevocable right to use some part of another person’s realproperty for a particular purpose. Most easements are routine, in which a utility company needs access to the property to maintain service of its electricity, water or internet.
Appraisers should familiarize themselves with their state laws regarding water frontage and related rights, as they can vary from state to state. Among the rights that come with realproperty ownership is the right to exclude others. The canal was owned by the state with an unclear easement for building beyond the rear lot line.
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