When it comes to land acquisition – one of the most important factors in getting this number reasonably accurate is to understand the “highest and best use” for a property. The question of a property's highest and best use is something all appraisers aim to address – and the issue is particularly relevant to appraisers and investors who are working with vacant land. When a vacant lot doesn't have any pre-existing improvements on it, there can be many potential uses for the property (depending on how the owner wants to use it, and what the local zoning regulations will allow), but even when there are several possibilities, there is only ONE highest and best use. Highest and best use is always the use that would produce the highest value for a property, regardless of its current use. The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the h...
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