Both the Appraisal Institute (AI) and the Royal Institute of Chartered Surveyors (RICS) consider a property’s use, the precursor of its value. Confusion arises for US appraisers and students alike in deciding how to conduct a highest and best use study because in the USA the AI’s dictionary definition does not match its textbook definition. In the UK, the RICS valuation manual includes several value definitions, each of which is based on use. However, little mention is made of the process of estimating use or its basis in market analysis. Outlines suggested revisions of the AI’s highest and best use definition and process together with comments on their potential application in the UK.
Journal of Property Valuation and Investment – Emerald Publishing
Published: Dec 1, 1997
Keywords: Market intelligence; United Kingdom; USA; Valuation