highest and best use

highest and best use definition - business

highest and best use

Appraisal of real estate at its highest present value based on the probable and legal use that produces the greatest net return. For example, an older home on property that is zoned commercial would be appraised as commercial property, not residential property, assuming the commercial valuation is higher.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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