Knowledge Focus: Highest and Best Use
Highest and Best Use
Highest and Best Use is that reasonable and probable use that supports the highest present value as of the effective date of the appraisal. The highest and best use of a property is the most important aspect to what determines its value. Property should always valued on the basis of its highest and best use, and might not be the same as its present use. The highest and best use should occur within the reasonably near term and cannot be highly speculative. In the real world, most properties are not developed to their highest and best use.
