A two-family residential property is now located in a central business district. The decision to convert this two-family residential house to a commercial office, housing a real estate firm and an insurance company, is an example of what appraisal principle?

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13-08-2020
Business

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A two-family residential property is now located in a central business district. The decision to convert this two-family residential house to a commercial office, housing a real estate firm and an insurance company, is an example of what appraisal principle?

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topeadeniran2 topeadeniran2 · Answer 1 · 2020-08-16T03:08:19+02:00

Answer: highest and best use

Explanation:

The highest and best use of when a property is being valued based on profitability ans what it could achieve. To do this, having the knowledge regarding the market and zoning are vital.

Therefore, The decision to convert this two-family residential house to a commercial office, housing a real estate firm and an insurance company, is an example of highest and best use.