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If you’ve ever considered investing in land development, you have probably heard the term “highest and best use” in reference to various properties. Although it’s easy to understand what the term means at its most basic level, even some seasoned real estate investors are unfamiliar with the four specific elements that ultimately determine a piece of land’s highest and best use. It’s important to establish a plot’s best use before starting any project because while a strategic design can add considerable value to a property, a poor one can be disastrous for all parties involved.

How a Good Design Contributes to Successful Land Development

During Planning

To determine a property’s highest and best use, you must ask four questions about the lot: What is legally permissible at the site, what is physically possible given the resources, what is financially viable, and what will result in the most profitable outcome? Local zoning laws will provide the answer to the first question, and the topography of the property itself will help you answer the second.

You can get creative when answering the third and fourth questions, though, and it’s these answers that will help you devise the best design possible given the circumstances. At the end of the day, considering highest and best use above all else will give you a great starting point to make the most of any project that comes your way.  

During Construction

land developmentConfirming a plot’s highest and best use may seem like a lot of work, but it could save money and time once construction begins. Utilizing and even highlighting a property’s unique features while respecting any bureaucratic red tape will be far more productive than working against nature or taking on the local municipality. Additionally, when everyone on the land development team is confident in the endgame, disputes and delays are less likely to arise along the way. This will ensure the project reaches completion on time and within budget, which will help the final product be more profitable sooner.

 

If you are preparing to develop a particular plot of land, turn to Abercrombie & Associates, Inc. Based in Cincinnati, they are proud to serve commercial and residential clients throughout the entire tri-state area. Whether you need help with property zoning or site engineering, you can rely on their team for quality service and accurate results. To discuss your land development needs, call (513) 385-5757. 

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