Exhibit 16.1 Highest and Best Use Worksheet Highest and and best use of the land as though vacant and of the property as improved may change depending on the land value of the subject property. Remember thar s always valued as though vacant and available to be put to its highest and best use. State Road 47 is a busy thoroughfare with commercial potential.Wagner Street is not a busy street and has no commercial potential. lots along State Road 47 and along Wagner Street are improved with nearly identical homes (by a tract production builder). All the lots are the same size (23,700 square feet). All improvements All sales are current and no sales have financing concessions. are physically the same in terms of age, condition, quality, etc. properties on the south side of State Road 47 and adjacent to Wagner Street are zoned residential only (commercial not allowed). The properties adjacent to and on the north side of State Road 47 are zoned residential/commercial, which allows for both residential and commercial uses It will cost about $3,000 to raze any of these homes : The subject property is Lot 4 in the Greenland Addition, a 23,700-sq-t. site with the same improvements as all the other lots in both additions. The site is zonet residential/commercial. Greenland Addition (residential/commercial zoning) Lot 7 Lot 6 $100,000 Lot 5 Lot 4 Subject Lot 1 Lot 2 $100,000 State Road 47 (four lanes, high traffic) Lot 26 $100,000 Lot 20 Lot 21 $100,000 Lot 22 Lot 23 Lot 24 Lot 25 Lot 27 Lot 29 $110,000 Lot 30 $110,000 Lot 28 Lot 31 Lot 33 Lot 34 $110,000 Lot 32 Lot 35 -Wagner Street (two lanes, asphait)--- Blue Lake Addition (residential zoning) Comparable Sales 1. Lot 2 in the Greenland Addition sold for $100,000 to a family that moved in and still lives there. 2. Lot 6 in the Greenland Addition sold for $100,000 to a family that moved in and still lives there. 3. Lot 21 in the Blue Lake Addition sold for $100,000. 4. Lot 29 in the Blue Lake Addition sold for $110,000. 5. Lot 30 in the Blue Lake Addition sold for $110,000. 6. Lot 34 in the Blue Lake Addition sold for $110,000. Fill in the blanks in the table based on the lot descriptions and the land values gven: Residential Land Value Land Value of Subject Property Building Value of Subject Property Highest and Best Use of Subject Site As Though Vacant Highest and Best Use of Subject Property As Improvecd Land Value $1.00 per sq.ft. $0.50 per sq. ft. $2.00 per sq. ft. $0.50 per sq.ft. $3.00 per sq. f 0.50 per sq, ft $4.00 per sq.ft $0.50 per sq. ft $5.00 per sq. ft $0.50 per sq. ft. See the Suggested Solutions section at the end of tis chapter for the correct answers. Exhibit 16.1 Highest and Best Use Worksheet Highest and and best use of the land as though vacant and of the property as improved may change depending on the land value of the subject property. Remember thar s always valued as though vacant and available to be put to its highest and best use. State Road 47 is a busy thoroughfare with commercial potential.Wagner Street is not a busy street and has no commercial potential. lots along State Road 47 and along Wagner Street are improved with nearly identical homes (by a tract production builder). All the lots are the same size (23,700 square feet). All improvements All sales are current and no sales have financing concessions. are physically the same in terms of age, condition, quality, etc. properties on the south side of State Road 47 and adjacent to Wagner Street are zoned residential only (commercial not allowed). The properties adjacent to and on the north side of State Road 47 are zoned residential/commercial, which allows for both residential and commercial uses It will cost about $3,000 to raze any of these homes : The subject property is Lot 4 in the Greenland Addition, a 23,700-sq-t. site with the same improvements as all the other lots in both additions. The site is zonet residential/commercial. Greenland Addition (residential/commercial zoning) Lot 7 Lot 6 $100,000 Lot 5 Lot 4 Subject Lot 1 Lot 2 $100,000 State Road 47 (four lanes, high traffic) Lot 26 $100,000 Lot 20 Lot 21 $100,000 Lot 22 Lot 23 Lot 24 Lot 25 Lot 27 Lot 29 $110,000 Lot 30 $110,000 Lot 28 Lot 31 Lot 33 Lot 34 $110,000 Lot 32 Lot 35 -Wagner Street (two lanes, asphait)--- Blue Lake Addition (residential zoning) Comparable Sales 1. Lot 2 in the Greenland Addition sold for $100,000 to a family that moved in and still lives there. 2. Lot 6 in the Greenland Addition sold for $100,000 to a family that moved in and still lives there. 3. Lot 21 in the Blue Lake Addition sold for $100,000. 4. Lot 29 in the Blue Lake Addition sold for $110,000. 5. Lot 30 in the Blue Lake Addition sold for $110,000. 6. Lot 34 in the Blue Lake Addition sold for $110,000. Fill in the blanks in the table based on the lot descriptions and the land values gven: Residential Land Value Land Value of Subject Property Building Value of Subject Property Highest and Best Use of Subject Site As Though Vacant Highest and Best Use of Subject Property As Improvecd Land Value $1.00 per sq.ft. $0.50 per sq. ft. $2.00 per sq. ft. $0.50 per sq.ft. $3.00 per sq. f 0.50 per sq, ft $4.00 per sq.ft $0.50 per sq. ft $5.00 per sq. ft $0.50 per sq. ft. See the Suggested Solutions section at the end of tis chapter for the correct answers