Property Valuation
The highest and best use analysis for a vacant lot considers which of the following uses?
AThe use that generates the highest sales price regardless of legality
BThe use that is physically possible, legally permissible, financially feasible, and maximally productive✓ Correct
CThe use desired by the current owner
DOnly residential uses regardless of zoning
Explanation
Highest and best use is the use that meets all four criteria: physically possible (can the land support the use?), legally permissible (is it allowed by zoning and other regulations?), financially feasible (will it produce income sufficient to justify development?), and maximally productive (of all feasible uses, which produces the highest land value?).
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