Property Valuation
What is 'highest and best use' analysis in Idaho real estate appraisal?
AFinding the most expensive possible use of the land
BThe reasonably probable and legal use of land that is physically possible, appropriately supported, financially feasible, and maximally productive✓ Correct
CThe use designated by current zoning
DThe use that generates the highest NOI
Explanation
Highest and best use (HBU) is the legally permissible, physically possible, financially feasible, and maximally productive use of land. HBU analysis is performed for the land as if vacant and for the property as improved. The HBU drives the choice of valuation approach and comparable properties used in appraisal.
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