What is “highest and best use”?

Highest and best use is the most valuable legal use of a property based on zoning, site conditions, and market demand. It matters because it affects value.

Why does it matter to buyers?
It can show whether a property has more potential than its current use.

Does it always mean redevelopment?
No. Sometimes the current use is already the best use.

What factors affect it?
Zoning, lot size, slope, views, and local demand.

Should I think about this in buying?
Yes, especially for lots, tear-downs, or major remodel candidates.

Can it change value a lot?
Absolutely, if the site supports a better use than the current structure.