Ask Question
6 August, 16:19

A single parcel is valued at $450,000. Zoning allows it to be subdivided into 8 lots and it is estimated that each lot could sell for $50,000. Site development costs (sewer, grading, road, etc.) would cost $50,000. What is the highest and best use?

+4
Answers (1)
  1. 6 August, 16:25
    0
    Selling the single parcel without dividing it into lots

    Explanation:

    There are three possible uses for the parcel: selling the parcel, selling the lots without development, and selling the lots with development.

    Selling the parcel would earn $450,000

    Selling the lots without incurring in development costs:

    8 lots x $50,000 selling price per lot = $400,000

    Selling the lots while incurring in development costs:

    $400,000 - $50,000 = $350,000.

    Therefore, the best option is to sell the single parcel, without dividing it into lots.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A single parcel is valued at $450,000. Zoning allows it to be subdivided into 8 lots and it is estimated that each lot could sell for ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers