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Topic 10. Highest and Best Use
February 22, 2019
This Chapter has been revised in its entirety.
a. Definition
The highest and best use of a property is the most probable use which is physically possible, appropriately supported, legally permissible, financially feasible, and results in the highest value.
b. Appraisal to Meet VA Guidelines
While the appraiser must determine the highest and best use, the appraiser must also complete the appraisal in accordance with VA guidelines. For example, since VA-guaranteed loans are made for residential purposes, no value may be given to commercial uses, crops, livestock, land for future development, or any other non-residential use.