What are the four criteria for Highest and Best Use?

The four criteria for Highest and Best Use are essential in determining the most productive and beneficial use for a property. The correct response identifies legal criteria, probable use, profitable use, and complimentary use as the fundamental aspects to consider.

Legal (Zoning) plays a crucial role because any viable use of a property must comply with local zoning regulations. This ensures that whatever use is proposed is permissible under the law.

Probable use refers to the potential uses of the property that are both feasible and likely to happen based on the current market and demand. This criterion looks at what is realistically achievable in terms of property use.

Profitable use is significant because it evaluates whether the intended use of the property can generate sufficient income or returns compared to other possible uses, ensuring that the investment is sound.

Lastly, complimentary use considers how the proposed use aligns with the surrounding area and complements other land uses. This can enhance the overall value and stability of the property within its context.

By covering these four criteria, the highest and best use analysis ensures that the property is utilized in a manner that maximizes its value while adhering to legal regulations and market conditions.