Property Valuation
Which of the following BEST describes the concept of 'highest and best use' in real estate?
AThe most intensive development physically possible on a site
BThe legally permissible, physically possible, financially feasible, and maximally productive use of a property✓ Correct
CThe use currently designated by local zoning law
DThe use preferred by the property owner
Explanation
Highest and best use is the most probable use that is legally permissible, physically possible, financially feasible, and maximally productive. It represents the use that produces the greatest value and is a foundation of the appraisal process.
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