Which method is typically used to analyze the highest and best use for a property?

The Four Tests Approach is a comprehensive method used to analyze the highest and best use of a property. This approach involves evaluating four criteria: legality, physical possibility, financial feasibility, and maximum productivity. By systematically assessing these factors, appraisers can determine the most appropriate and valuable use for the property.

Legality examines zoning regulations and land use restrictions; physical possibility assesses the property's characteristics and limitations; financial feasibility evaluates whether the proposed use is economically viable; and maximum productivity considers which use would yield the highest returns. This structured evaluation helps ensure that all relevant aspects are considered in determining a property’s highest and best use, providing a thorough analysis tailored to the specific circumstances of the property in question.