Value concepts
Highest and best use
The legally permissible, physically possible, financially feasible and maximally productive use
All four tests must be met, applied in that order, with maximal productivity as the final filter among the uses that survive the first three. It is determined for the land as though vacant, as well as for the property as improved.
How the exam asks about it
The owner’s intention is not one of the tests, and offering it as an answer is the standard distractor.
Related terms
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