Highest and best use includes which criteria?

Highest and best use includes which criteria?

• A. Only financially feasible use
• B. Only legally permissible use
• C. Legally permissible, physically possible, financially feasible, and most productive use
• D. Current use only

Answer: (C)

Highest and best use is determined by four criteria that must all be satisfied to justify a property's value: it must be legally permissible, physically possible, financially feasible, and the most productive use in terms of net value. If a proposed use breaks any one of these—perhaps it’s not allowed by zoning, or the site can’t accommodate it, or the costs and expected return don’t work—the use can’t be the highest and best. Even if a use is legally allowed and physically possible, it won’t qualify if it doesn’t yield the best economic return, and the current use isn’t automatically the highest and best unless it also meets all four criteria and produces the greatest net value.

Highest and best use is determined by four criteria that must all be satisfied to justify a property's value: it must be legally permissible, physically possible, financially feasible, and the most productive use in terms of net value. If a proposed use breaks any one of these—perhaps it’s not allowed by zoning, or the site can’t accommodate it, or the costs and expected return don’t work—the use can’t be the highest and best. Even if a use is legally allowed and physically possible, it won’t qualify if it doesn’t yield the best economic return, and the current use isn’t automatically the highest and best unless it also meets all four criteria and produces the greatest net value.