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I <br />.1111 <br /> DEFINITION OF HIGHEST AND BEST USE <br /> I <br /> The Appraisal Institute defines highest and best use as <br /> 11 follows: <br /> "The most profitable, likely use to which a property can be <br /> put. The opinion of such use may be based on the highest and <br /> most profitable continuous use to which the property is adapted <br /> and needed, or likely to be in demand in the reasonably near <br /> future. However, elements affecting value that depend on <br /> 11 events or combination of occurrences that, although in the <br /> realm of possibility, are not fairly shown to be reasonably <br /> probable, should be excluded from consideration. Also, if the <br /> intended use is dependent on an uncertain act of another <br /> person, the intention cannot be considered. " <br /> "That use of the land that may reasonably be expected to <br /> produce the greatest net return to the land over a given period <br /> of time. That legal use that will yield to the land the <br /> highest present value, sometimes called "optimum use. " <br /> • In estimating the highest and best use, there are <br /> essentially four stages of analysis: <br /> 1. Possible use. What uses of the site in question are <br /> physically possible? <br /> 2. Permissible use (legal) . what uses are permitted by <br /> zoning and deed restrictions on the site in 'question? <br /> 3 . Feasible use. Which possible and permissible uses <br /> will produce a net return to the owner of the site? <br /> 4. Highest and best use. Among the feasible uses, which <br /> use will produce the highest net return or the highest present <br /> worth? <br /> 7 <br />