Property Valuation
The 'highest and best use' analysis in Texas real estate appraisal must consider uses that are:
AOnly currently permitted by zoning
BLegally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CMost desired by the property owner
DSimilar to uses of neighboring properties
Explanation
Highest and best use is the reasonably probable use of the property that is: (1) legally permissible (allowed by zoning and deed restrictions), (2) physically possible (the site can accommodate it), (3) financially feasible (generates a positive return), and (4) maximally productive (produces the highest value). Appraised value is based on this use.
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