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The following definitions/explanations were provided by the research division of the League <br /> of Minnesota Cities (LMC). <br /> Highest and Best Use <br /> That reasonable and probable use that will support the highest present value, as <br /> defined, as of the effective date of the appraisal. <br /> Alternatively, that use, from among reasonably probable and legal alternative uses, <br /> found to be physically possible, appropriately supported, financially feasible, and <br /> which results in the highest land value. <br /> Note: The definition applies specifically to the highest and best use of land. It is to be <br /> recognized that in cases where a site.has existing improvements on it, the highest and best <br /> use may very well be determined to be different from the existing use. The existing use will <br /> continue, however, unless and until land value in its highest and best use exceeds the total <br /> value of the property in its existing use. <br /> Implied within these definition is recognition of the contribution of that specific use to <br /> community environment or to community development goals in addition to wealth <br /> maximization of individual property owners. Also implied is that the determination of <br /> highest and best use results from the appraiser's judgement and analytical skill, i.e., that the <br /> use determined from analysis represents an opinion, not a fact to be found. In appraisal <br /> practice, the concept of highest and best use represents the premise upon which value is <br /> based. In the context of most probable selling price (market value) another appropriate <br /> term to reflect highest and best use would be most probable use. In the context of <br /> investment value an alternative term would be most profitable use. <br /> Most Appropriate Use <br /> A planning and zoning concept applicable to that use of land which: (1)will promote <br /> the greatest good for the greatest number; (2) is in the best interests of the <br /> community as a whole. It may or may not be the highest and best use. Likewise, it <br /> may or may not be a present use or it may be a future use. <br /> Most Probable Use <br /> Highest and best use in the context of market value. . <br /> Most Profitable Use <br /> Highest and best use in the context of investment value. <br /> Source: Byrl Boyce, Real Estate Appraisal Terminology, Cambridge, MA: Ballinger, <br /> 1975. <br />