What are the four criteria that determine the highest and best use of a property?

Prepare for the Oregon Property Appraiser Exam. Use flashcards and multiple choice questions with hints and explanations for each question. Get ready for success!

The four criteria that determine the highest and best use of a property are indeed focused on several key evaluations, specifically:

  1. Legally Permissible: This criterion considers what can be built on the property in accordance with local, state, and federal regulations. Zoning laws, land-use regulations, and any restrictions imposed by easements or covenants come into play here, as they define what is legally allowed for the property.
  1. Physically Possible: This aspect assesses whether the intended use is feasible given the physical characteristics of the property. Factors such as size, shape, topography, and the current state of the property influence what can physically be constructed or utilized on that land.

  2. Financially Feasible: This criterion involves analyzing whether the potential use of the property can generate sufficient income to justify the costs associated with its development or use. The financial viability is essential, as a use that cannot cover its expenses or generate profit is not considered the highest and best use, regardless of its legality or physical possibilities.

  3. Maximally Productive: This final criterion examines whether the proposed use will yield the highest return or benefit compared to alternative uses. It is focused on maximizing the economic value that

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