Property Valuation
What is 'highest and best use' in real estate appraisal?
AThe current use of the property
BThe use that produces the highest value and is legally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CThe most expensive possible development on the land
DThe use preferred by the local zoning authority
Explanation
Highest and best use is the reasonable, probable use that is legally permissible, physically possible, financially feasible, and maximally productive — i.e., the use that produces the highest property value.
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