Use permits can have a significant effect on the highest and best use. Interim and Ultimate Highest and Best Use Properties often have an interim highest and best use because there may not be a ready market for the ultimate highest and best use. However, there may already be hundreds of one-acre lots on the market and little or no demand for them. Therefore, the only buyers will be those who are willing to speculate on the property s future worth. Excess Land Excess land is surplus land beyond that which is needed to support the property's highest and best use.
Excess land can be dividable or undividable and often has a separate highest and best use.
There are several types of excess land. If the land required to support the house, a garage and a few outbuildings is five acres, then the other 195 acres is excess land. Before and After Analysis Earthquakes, floods and storms can inflict major damage on real estate. Properties can also be severely altered through contamination, easements, encroachments and eminent domain acquisitions for roads and utilities. In most of these cases the property loses value, but sometimes it gains value.