highest and best use

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Highest and Best Use

In real estate appraisals, the use of a property that leads to its highest possible value. The highest and best use may not be the current use of a property; in such cases, one may be able to buy the property for less than its ideal value. The highest and best use must be legal, physically possible, financially feasible and maximally productive.

highest and best use

In public appraisal and tax appraisal, that use of land which would be the most economically advantageous over a given period of time,while at the same time being legally, financially,and physically possible.A 5-acre residential estate within minutes of downtown Houston would have a highest and best use if it were developed for offices,and therefore should be appraised with that use in mind.Many property tax laws allow exemptions and appraisal at current use rather than highest and best use.