What does "highest and best use" mean in property assessment?

"Highest and best use" refers to the most profitable legal use of a property that is physically possible, legally permissible, economically feasible, and maximally productive. This concept is essential in property assessment as it helps determine the true market value of a property based on its potential uses.

When appraisers evaluate a property, they consider not just what the current use is but also what alternative uses could yield the highest financial return. This involves analyzing the market conditions, zoning regulations, and the physical characteristics of the property to identify the use that would generate the most value.

In contrast, the other options do not encompass the full concept of "highest and best use." The most affordable legal use may not necessarily lead to profitability, the least expensive use may not maximize value, and attractiveness is subjective and does not directly relate to the economic potential of the property. Thus, identifying the most profitable legal use is key in understanding and applying the concept appropriately in property assessments.