Property Valuation
The principle of highest and best use means:
AThe most intensive use allowed by zoning
BThe legally permissible, physically possible, financially feasible, and maximally productive use of a property✓ Correct
CThe use that generates the most gross income
DThe use preferred by the local government
Explanation
Highest and best use is the use that is legally permissible, physically possible, financially feasible, and produces the highest value. It forms the basis for the appraisal process.
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