As if Vacant vs. As Improved

As if Vacant vs. As ImprovedAppraisers analyze this in two ways. First, they look at the land "As if Vacant". They imagine the buildings are gone and ask, "If this land were empty today, what would we build on it to make the most money?" Second, they look at the property "As Improved". They ask, "Do the current buildings add value, or is the land worth more without them?" If the land is worth $500,000 as a gas station, but the current house on it is only worth $200,000, the highest and best use is to demolish the house.