Property Valuation
The principle of 'highest and best use' in real estate appraisal is defined as the use that is:
AThe use that generates the most revenue regardless of legality
BLegally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CCurrently being made of the property
DThe use designated by the local zoning ordinance
Explanation
Highest and best use is the reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and results in the highest value. This concept underpins all approaches to value.
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