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DAHLEN & DWYER, INC. <br />HIGHEST AND BEST USE <br />Highest and best use, as defined in Real Estate Appraisal Terminology, <br />edited by Byrl Boyce, Ph.D., revised edition, Cambridge, Massachusetts, Ballinger <br />Publishing Company, 1984, pages 126 -127, is: <br />"...that reasonable and probable use that will support the highest present <br />value, as defined, as of the effective date of the appraisal. <br />Alternatively, that use, from among reasonably probable and legal <br />alternative uses, found to be physically possible, appropriately <br />supported, financially feasible, and which results in the highest land <br />value." <br />ESTIMATE OF HIGHEST AND BEST USE <br />Professional Standards require the appraiser to divide the highest and <br />best use of any given parcel into two segments: An Analysis of the Highest and Best <br />Use of the site "as vacant ", as well as an Analysis of the Highest and Best Use of the <br />site "as improved ". Each conclusion requires separate analyses which are applied in <br />different manners to the subject at hand. <br />The Highest and Best Use analysis of both land "as vacant" and "as <br />improved" must meet the following criteria: <br />1. Physically Possible <br />2. Legally Permissible <br />3. Financially Feasible <br />4. Maximum Productive Characteristics <br />The following paragraphs consider the Highest and Best Use of the <br />property "as vacant" and "as improved ". <br />Page 101 <br />L4 <br />