Property Valuation
Highest and best use in appraisal is defined as the use that is:
AThe most profitable use regardless of physical constraints
BLegally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CThe current use of the property as-is
DThe use desired by the property owner
Explanation
Highest and best use is the reasonably probable use that is (1) legally permissible under zoning, (2) physically possible given the site, (3) financially feasible, and (4) results in the maximum land value. Appraisers must determine this for both vacant land and improved properties.
Related Utah Property Valuation Questions
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- Which approach is most reliable for appraising a new single-family home in a suburban Salt Lake County subdivision with many similar recent sales?
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