The legal use of a property that will yield to the property its highest present value is the property's Highest And Best Use. Four criteria must be analyzed in the Highest And Best Use evaluation:
1. Is use physically possible?
2. Is use legally possible?
3. Is it financially feasible?
4. Is it maximally productive?
Improved properties are analyzed for HABU both as if vacant and as improved. The analysis of examining an improved property as vacant is designed to identify possible superior uses of the property. The highest and best use as improved examins the improvements for adequacy for intended use and obsolescence. Potential modifications to the improvements, which couls improve the property's financial return are then explored.
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