The analysis asks whether a use is physically possible, legally permissible, financially feasible, and maximally productive. Valuation proceeds from that use rather than the current one.
Reasonable probability of rezoning may be considered.
Alternative Names:
Highest and Best Use Analysis|HBU
Why it Matters?
Reasonable probability of a zoning change can be incorporated where the evidence supports it, which permits valuing agricultural land at development potential if approval was likely. That inquiry frequently doubles or triples the valuation and is therefore the central appraisal dispute. Speculative rezoning is excluded, so the analysis turns on evidence of comparable approvals, municipal planning documents, and the parcel's position relative to existing development.
Frequently Confused with
Related terms
Frequently asked questions
Can rezoning probability affect value?
What evidence supports the probability?





