Property Valuation
The appraisal concept of 'highest and best use' requires the use to meet all of the following criteria EXCEPT:
ALegally permissible under current zoning and private restrictions
BPhysically possible given the site's size, shape, and characteristics
CFinancially feasible generating an adequate return on investment
DApproved by the Pennsylvania Real Estate Commission before the appraisal is completed✓ Correct
Explanation
Highest and best use is defined as the reasonably probable use that is: legally permissible under zoning and restrictions; physically possible given site characteristics; financially feasible generating adequate return; and maximally productive yielding the highest land value. PREC approval is not a criterion — appraisers make their own independent determination.
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