Property Valuation
An appraiser in Nashua, NH determines that the highest and best use of a commercial corner lot is a mixed retail/residential development rather than single-family residential. This conclusion:
ARequires NHREC approval before being included in the report
BIs a key determination that drives the appraisal analysis, as the property is valued at its highest and best use✓ Correct
CIs irrelevant since the property is currently vacant land
DCan only be determined by the planning board
Explanation
Highest and best use (HBU) is the most probable use that is legally permissible, physically possible, financially feasible, and maximally productive. The appraiser's HBU determination drives the entire valuation analysis—a commercially zoned corner lot may be worth far more for mixed-use development than as single-family residential.
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