In property appraisal, what does "financially feasible" refer to?

In property appraisal, "financially feasible" refers specifically to the economic viability of a property's use. This concept assesses whether the projected income or benefits that a specific use could generate outweigh the costs associated with that use. It involves a thorough analysis of the potential revenue, operational expenses, and financing considerations to determine if a proposed use of a property is sustainable and profitable. By evaluating this economic aspect, appraisers can help property owners and investors make informed decisions about the best use of a property and how to maximize its value in alignment with market conditions and opportunities.

This understanding is pivotal in the overall appraisal process, as it bridges the property's physical attributes with its market potential, ensuring that any proposed use aligns with what is realistically achievable in a financial context.