Property Valuation
The principle of 'highest and best use' in Colorado appraisal means:
AThe most expensive use of the property
BThe use that produces the maximum value, is legally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CThe use currently in place on the property
DThe use designated by the local zoning ordinance
Explanation
Highest and best use is defined as the reasonably probable use that is legally permissible, physically possible, financially feasible, and maximally productive (produces the highest value). It is the foundation of the appraisal process.
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