I’m doing a property appraisal report for the address 16861 Ventura blvd. You will find attach an example report to help you, i highlighted the needed in "Base file" and provided a copy of the book for a better understanding.
under the Highest and Best Use of Property as Improved (this is the topic ur talking about), make sure to answer the following questions:
1. Retain the existing improved use.
2. Modify the existing use (i.e., the improvements)
in some way. For example, if the
subject property is a residence with two
bedrooms in a market where three or four
bedrooms are standard, the highest and best
use of the property as improved may include
adding a third or fourth bedroom to the house.
3. Demolish the existing improvements and
redevelop the site for some other use. For
example, suppose the subject property is
an improved residential site. The site is in a
desirable location, the land value (as though
vacant) is $400,000, and the value of the
property “as is” is $250,000 (ignoring the
higher land value). The cost of demolition
is $5,000. The highest and best use of the
property as improved would be to remove the
improvements and redevelop the site because
the value of the site less the cost of demolition
of the improvements ($400,000 - $5,000 =
$395,000) is much higher than the improved
value as a residence ($250,000).
The four tests (physically possible, legally permissible,
financially feasible, maximally productive)
are still applicable, but they are performed in the
context of the three scenarios relating to the existing
use of the property.