Property Valuation
What does 'highest and best use' mean in North Dakota property appraisal?
AThe use that produces the tallest structure
BThe most profitable legally permissible and physically possible use for which the property is appropriately supported✓ Correct
CThe current use of the property
DThe use preferred by the local municipality
Explanation
Highest and best use is the reasonably probable use that is legally permissible, physically possible, financially feasible, and maximally productive. It is a fundamental concept in all appraisal approaches.
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