Which option is not associated with the appraisal definition of the highest and best use?

Prepare for the South Dakota Certified Appraiser Assessor CAA Exam. Study with comprehensive flashcards and multiple choice questions, each with hints and detailed explanations. Ace your certification!

The highest and best use in appraisal refers to the most profitable and legal use of a property that is physically possible and economically feasible. It encompasses several criteria:

  • The legally permissible use pertains to what zoning laws, regulations, and other legal restrictions allow.
  • The physically possible use considers the physical characteristics of the property and what can be done in terms of construction and usage on the site.

  • The economically feasible use evaluates whether the use generates enough income to justify the investment.

The least cost alternative, on the other hand, does not align with the traditional definition of highest and best use. This concept focuses instead on minimizing costs rather than maximizing potential returns or benefits. Therefore, it does not fit within the comprehensive framework when determining highest and best use, making it the option that is not associated with the appraisal definition of this principle.

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