Property Valuation
What is the significance of land residual in highest and best use analysis?
AThe value of leftover land
BThe process of testing different uses to determine which produces the highest land value, indicating the highest and best use✓ Correct
CA technique for valuing unimproved land
DA land use restriction
Explanation
Land residual analysis tests different development scenarios to find which use produces the highest residual value for the land after deducting the cost of improvements. The use with the highest land residual indicates the highest and best use.
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