Question

Jim and Joan owned a farm which produced fruits and vegetables for sale. The farm was located in a heavily populated area. Every year, hundreds of customers came to buy produce from them at the farm. One day, customers were surprised to see that the farm stand was gone and that Jim and Joan had sold the property for a much higher price than farm land would normally cost. Which principle of value did the appraiser use in determining the value of the property?

Answer 1

Highest and best use

Step-by-step explanation:

The highest and best use principle explains the probable as well as reasonable and legal use of lands that are vacant as well as improved property. This property or land must be financially feasible and be supported appropriately so that the result gives highest value.