Highest 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 that land is always valued as though vacant and available to be put to its highest and best use.

• First Street is a busy thoroughfare with commercial potential. Sherman Avenue us not a busy street and has no commercial potential.
• The lots along First Street and Sherman Avenue are improved with nearly identical homes by a tract production builder. All the lots are the same size (9,800 square feet).
• All improvements are physically the same in terms of age, condition, quality, etc.
• All sales are current and no sales have financing concessions.
• The properties facing Sherman Avenue are zoned residential only (commercial is not allowed).
• The properties facing First Street are zoned residential/commercial, which allows for both residential and commercial uses.
• It will cost approximately $4,000 to raze any of these homes.
• The subject property is lot 3 and faces First Street and is 9,800 square feet.

Use the following comparable sales to help in your calculations:

Lot 1 First Street sold for $280,000

Lot 7 First Street sold for $280,000

Lot 10 First Street sold for $280,000

Lot 15 Sherman Avenue sold for $300,000

Lot 18 Sherman Avenue sold for $300,000

Fill in the blanks of the following table based on the lot descriptions and the land values given:

Commercial Land Value	Residential Land Value	Commercial Land Value of Subject Property	Residential 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 Improved
$26.00 per sq. ft.	$13.00 per sq. ft.
$27.00 per sq. ft.	$13.00 per sq. ft.
$28.00 per sq. ft.	$13.00 per sq. ft.
$29.00 per sq. ft.	$13.00 per sq. ft.
$30.00 per sq. ft.	$13.00 per sq. ft.