• 
  

Variable utama dalam pembahasan HBU adalah :

• Legally Permissable
• Physically Possible
• Financially Feasible
• Maximally Productive

Pengertian umum kegunaan yang terbaik dan tertinggi

• Kekuatan pasar menciptakan nilai, karenanya interaksi antara kekuatan pasar dengan kegunaan terbaik dan tertinggi sangat penting.

• Dalam Penilaian, untuk mengestimasi nilai, analisis HBU mengidentifikasi keuntungan yang paling optimal dengan kegunaan yang paling kompetitif bagi property yang dinilai.

• Karena alasan diatas maka HBU didefinisikan sebagai “The reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible and that results in the highest value”
  
  

Perbandingan HBU dengan kajian lainnya :
Analisis Pasar

• Mengidentifikasi permintaan (demand) untuk berbagai alternatif penggunaan serta melakukan analisis demand dan supply property untuk mem-forecast tingkat penyerapan dan kemungkinan sewa.
  

Feasibility Analysis

• Untuk menentukan urutan nilai berdasarkan kriteria variable, seperti rate of return, residual value, dll.
• Menghitung NOI/cash flow dan pemilihan kapitalisasi / tingkat diskon yang layak untuk menentukan nilai property.

Highest And Best Use (HBU) :

• Analisis keuangan yang menghasilkan nilai tertinggi Analisis keuangan khusus, waktu dan partisipan pasar
  
  
  Dalam menganalisis HBU, harus dibedakan antara
  HBU tanah kosong (land though vacant), dan HBU yang terbangun (as improved)

· Apabila tanah kosong, proses berfikirnya adalah:

Digunakan untuk apa tanah tersebut ?
Harus dipertimbangkan hubungan antara kegunaan saat itu dengan kegunaan-kegunaan potensialnya

Dua alasan untuk mengidentifikasi HBU tanah kosong dalam penilaian :
- Untuk mengestimasi nilai sebagian tanah
- Untuk mengidentifikasi perbandingan harga atas tanah kosong tersebut.

· Apabila Tanah yang telah dibangun; yang harus dianalisis adalah :
Kegunaan yang memaksimalkan nilai sebuah investasi properti, konsisten dengan rate of return harus dikalkulasikan bagi kedua jenis penggunaan tadi, dengan mempertimbangkan seluruh investasi dan capital expenditurnya.

Dua alasan untuk menggunakan analisis HBU atas tanah yang telah dibangun
· Untuk mengidentifikasi kegunaan properti yang diharapkan akan menghasilkan overall rate of return yang tertinggi atas modal yang diinvestasikannya.
· Untuk membantu mengidentifikasi properti pembanding.

1. Legally Permissable; kegunaan apa yang diijinkan menurut peraturan :
· Zoning
· Jenis bangunan / konstruksi
· Lingkungan
· Dll.

2. Physically Possible; kegunaan apa yang mungkin untuk dibangun diatas tanah tersebut :
· Menurut ukuran
· Permukaan
· Kontur
· Kesuburan
· Irigasi
· Akesibilitas
· Risiko bencana alam, yang memungkinkan membatasi kegunaan potensialnya

3. Financially Feasible; kegunaan apa yang secara finansial layak.
Tentukan kegunaan yang mana yang akan menghasilkan income, atau return, sama atau lebih besar dibanding dengan pengeluaran dan kewajiban finansial serta amortisasi modal.

4. Maximally Productive; kegunaan apa yang menghasilkan / memproduksi paling tinggi.
Kegunaan yang menghasilkan nilai sisa tanah tertinggi konsisten dengan rate of return yang dijaminkan oleh pasar. Bagi kegunaan properti.

Test of highest and best use
In order to be considered as the Highest and Best Use of a property, any potential use must pass a series of tests. The exact definition of Highest and Best Use varies, but generally the use must be:

legally allowable
physically possible
financially feasible
maximally productive

Legally allowable
Only those uses that are, or may be, legally allowed are potential highest and best uses. This may exclude uses that are not, and unlikely to become, allowed by zoning, uses forbidden by government regulations, and uses prohibited by deed restrictions or covenants.

Properties with a use that predates existing zoning regulations may be legally nonconforming. Such grandfathered uses are generally legal even though they do not meet current zoning regulations. Since their use predates the zoning, they are "grandfathered in". However, some such uses may not be reproduced if the legally nonconforming improvement is destroyed or damaged beyond a certain point.


Physically possible
Any potential use must be physically possible given the size, shape, topography, and other characteristics of the site. For example a 40,000-square-foot (3,700 m2) single story warehouse would not fit on a 10,000-square-foot (930 m2) site, therefore that use would fail the physical possibility test.


Financial feasibility
The highest and best use of a property must be financially feasible. This means that the proposed use of a property must generate adequate revenue to justify the costs of construction plus a profit for the developer. In the case of an improved property, with obvious remaining economic life, the question of financial feasibility is somewhat irrelevant. In the case of an improved property with limited remaining economic life, the question of financial feasibility becomes a question of the maximally productive use of the site. If the value of the land As Vacant exceeds the value of the property As Improved, then redevelopment of the site becomes the maximally productive use of the property and continued use of the existing improvements that do not represent the highest net value of the site is considered to be financially unfeasible.


Maximally productive use
Finally the use must generate the highest net return (profit) to the developer. A property that could hypothetically be developed with residential, commercial or industrial development might only have one of those uses as its highest and best use. These three hypothetical development scenarios follow to illustrate the test of maximally productive use.

Price of Site: $100,000 (remains unchanged in all three examples)

_____

Cost to construct 10,000 sq ft (930 m2) industrial warehouse: $750,000

Market Value of 10,000 sq ft (930 m2) industrial warehouse: $910,000

Profit for industrial development: 7%

_____

Cost to construct 10,000 sq ft (930 m2) retail strip center: $1,500,000

Market Value of 10,000 sq ft (930 m2) retail strip center: $1,840,000

Profit for retail development: 15%

_____

Cost to construct 10,000 sq ft (930 m2) of residential condominiums: $1,200,000

Market Value of 10,000 sq ft (930 m2) of residential condominiums: $1,534,000

Profit for residential development: 18%

_____

As the examples illustrate, even though the retail development results in the overall highest market value for the development, the residential development scenario results in the highest net return to the developer and this makes it the maximally productive use.


Vacant and improved
The Test of Highest and Best Use is applied to an improved properties both as improved and as if vacant. Vacant properties are generally only given the as vacant test. The Highest and Best Use as vacant may be the same or different as the Highest and Best use as improved.

For example, "House A" in a residentially zoned area may have a highest and best use as vacant and a highest and best use as improved that are both residential. A similar "House B" in a commercially zoned area may have a highest and best use as vacant as a commercial lot and highest and best use as improved as a single family residence.

If the value of the commercial lot as vacant in "House B" exceeds the value of house as a residence as improved plus demolition costs, the overall highest and best use of this property would be the as vacant value of the commercial lot. For example, assume that "House B" has a value as a house of $200,000, and a site value as a commercial lot of $250,000 with a cost to demolish the house and prepare the site at $25,000. The Highest and Best Use of the site is to demolish the house and sell the site as a commercial lot. The market value would be $225,000 ($250,000 site value minus $25,000 demolition cost). However if the demolition costs rose to $55,000, the Highest and Best Use would be the existing residential use, because the value as a commercial lot (now $195,000) would not exceed the existing value as a residence.

This would be the Highest and Best Use of the property, even though it is contrary to what actually exists. Even if the house is not razed and the site sold as a commercial lot, the Highest and Best Use is the commercial lot use. The market value of the property is driven by this hypothetical conversion, even if it never takes place due to the utility that this potential conversion would bring to a purchaser.


Economic theory
The economic concepts of utility and substitution drive the highest and best use analysis. The highest and best use of a property determines its utility to a potential purchaser. The purchaser of such a property would pay no more than a competing property with the same utility while a seller would accept no less that a seller of a comparable property. That is true to the neighbourhood.(SOurce :The Appraisal of Real Estate, 12th Edition, by the Appraisal Institute )