Principles of Real EstateQuestion 10 of 100
The principle that a property's maximum value is achieved when it is used in the way that produces the greatest return is called:
a.Highest and best use
b.Substitution
c.Regression
d.Contribution
Explanation
Highest and best use is the legally permissible, physically possible, financially feasible, and maximally productive use of a site. Appraisers analyze it because value is tied to the most profitable reasonable use. Substitution, regression, and contribution are other valuation principles.
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