Highest and Best Use Studies
Independent analysis that determines the most financially beneficial and legally permissible use of a property.
Used for redevelopment planning, valuation decisions, legal matters, investment strategy and lender review across the GTA and surrounding areas.
Every property has multiple potential uses, but only one is considered its highest and best use.
This determines the most profitable, legally allowed and market supported direction for the property.
Advanced Appraisals provides professionally supported studies that help homeowners, investors, lenders and planners make strategic decisions with clarity and confidence.
Our analysis combines zoning, market behaviour, feasibility, and value modeling to deliver a clear and defensible conclusion.
A highest and best use study is often required when:
• The property may be suitable for redevelopment
• You are evaluating a secondary suite, garden suite or coach house
• Considering conversion to a duplex, triplex or four unit property
• Applying for refinancing that depends on redevelopment potential
• Deciding whether to renovate, rebuild or sell
• Reviewing zoning restrictions or upcoming municipal changes
• Handling estate or legal disputes involving redevelopment potential
• Determining whether land value exceeds existing improvement value
• Investors need scenario modeling for long term planning
• Private lenders require risk and feasibility assessment
This analysis provides clarity on what is legally possible, financially viable and supported by real market demand.
HOW WE COMPLETE THE STUDY
Our highest and best use studies include:
• Current zoning and permitted uses
• Potential zoning changes and planning trends
• Lot size, shape, elevation and physical limitations
• Market demand for alternative uses
• Construction feasibility and redevelopment cost considerations
• Land value versus improved value
• Multiple development or renovation scenarios
• Projected market values for each scenario
• Financial viability and risk assessment
• Neighbourhood trends and demographic analysis
• Comparable sales for land and redevelopment properties
The result is a clear conclusion on the most advantageous use of the property.
We evaluate scenarios such as:
• Tear down and rebuild
• Custom or luxury home redevelopment
• Adding legal secondary suites
• Duplex, triplex or multi unit conversions
• Garden suites and accessory dwelling units
• Lot severance or subdivision
• Land assembly potential
• Renovate versus rebuild decisions
• Estate or divorce settlements involving redevelopment value
• Conversions to income generating properties
• Underutilized or oversized lots
• Properties where land value exceeds building value
FAQ
What does highest and best use actually mean?
It is the legally permissible, financially viable and market supported use that results in the highest property value.
Do I need zoning approval before requesting this study?
No. The study evaluates current zoning and potential future changes.
Can the study determine if I should rebuild instead of renovate?
Yes. We model both scenarios and determine which creates greater value.
Can this study be used for refinancing or lending?
Yes. Lenders often rely on highest and best use conclusions for redevelopment loans.
Does this help with adding a basement suite or garden suite?
Yes. We determine feasibility, zoning alignment and market value impact.
What if my property is oversized or underutilized?
We analyze whether subdivision, secondary units or redevelopment produces better value.
