A property contains 2.4 acres and is worth: A. $155,000 as single home site B. $85,000 per unit as a site for a duplex and C. $60,000 per acre as a retail site. All uses are physically possible, economically feasible and legally permitted. Which is the highest and best use?

Question

Tootsie

Business

21 November, 10:18

A property contains 2.4 acres and is worth: A. $155,000 as single home site B. $85,000 per unit as a site for a duplex and C. $60,000 per acre as a retail site. All uses are physically possible, economically feasible and legally permitted. Which is the highest and best use?

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Answers (1)

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Ortiz · Answer 1

The best use is the duplex

Explanation:

The first possible use value, as a single home, is already given in the question: $155.000.

For the retail site, we have $60,000 per acre and 2.4 acres:

$60,000 x 2 + $60,000 x 0.4

=$144,000

A duplex has two units, and the value is $85,000 per unit:

$85,000 x 2 = $170,000

Therefore, the duplex gives the highest possible value of use to the 2.4 acres.