Property Valuation
A Connecticut property that would have been worth $600,000 in its current configuration is in a neighborhood that was recently rezoned to allow high-density development. A developer estimates the land alone is worth $900,000 for redevelopment. The 'highest and best use' is:
AThe existing single-family residential use at $600,000
BRedevelopment—the highest and best use is the use that produces the maximum value, which is now high-density development✓ Correct
CContinued occupancy until the mortgage is paid off
DAgricultural use since it's adjacent to open space
Explanation
Highest and best use is the use that is physically possible, legally permissible, financially feasible, and maximally productive. If rezoning permits high-density development with a value of $900,000 vs. $600,000 for the current use, the highest and best use is the redevelopment use.
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