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<br />DAHLEN & DWYER, INC. <br /> <br /> <br />HIGHEST AND BEST USE <br /> <br />Highest and best use, as defined in Real Estate Appraisal Terminology" edited <br />by Byrl Boyce, Ph.D., revised edition, Cambridge, Massachusetts, Ballinger Publishing <br />Company, 1984, pages 126-127, is: <br /> <br />". fl. that reasonable and probable use that will support the highest present <br />value, as defined, as of the effective date of the appraisal. <br /> <br />Alternatively, that use, from among reasonably probable and legal alternative <br />uses, found to be physically possible, appropriately supported, financially <br />feasible, and which results in the highest land value. " <br /> <br />ESTIMATE OF HIGHEST AND BEST USE <br /> <br />Professional Standards require the appraiser to divide the highest and best use <br />of any given parcel into two segments: An Analysis of the Highest and Best Use of <br />the site "as vacant" I as well as an Analysis of the Highest and Best Use of the site <br />"as improved". Each conclusion requires separate analyses which are applied in <br />different manners to the subject at hand. <br /> <br />The Highest and Best Use analysis of both land" as vacant" and "as improved" <br />must meet the following criteria: <br /> <br />1. <br />2. <br />3. <br />4. <br /> <br />Physically Possible <br />Legally Permissible <br />Financially Feasible <br />Maximum Productive Characteristics <br /> <br />The following paragraphs consider the Highest and Best Use of the property <br />"as vacantfl. <br /> <br /> <br />28 <br />