Property Valuation
What does 'highest and best use' mean in real estate appraisal?
AThe use that produces the highest gross income
BThe legally permissible, physically possible, financially feasible, and maximally productive use✓ Correct
CThe current use of the property
DThe use that generates the most tax revenue
Explanation
Highest and best use is the use that is legally permissible, physically possible, financially feasible, and maximally productive — producing the highest present value of the property.
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