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Highest and Best Use

  1. The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. [Source: Appraisal Institute dictionary]
  2. Highest and best use is a concept in real estate appraisal. It states that the value of a property is directly related to the use of that property; the highest and best use is the reasonably probable use that produces the highest property value. The highest and best use may or may not be the current use of the property. In order to be considered as the highest and best use of a property. The exact definition of highest and best use vary, but generally the use must be: legally allowable, physically possible, financially feasible, and maximally productive (profitable). [Source: Wikipedia]