Which of the following is NOT a test criterion for highest and best use?

• A. Socially Acceptable
• B. Physically Possible
• C. Legally Permissible
• D. Financial Feasibility

Answer: (A)

When evaluating highest and best use, you rely on four objective tests: legally permissible, physically possible, financially feasible, and maximally productive. Social acceptability isn’t one of these formal tests, so it isn’t used to determine the highest and best use in the appraisal framework.

Legally permissible means the use must comply with zoning, codes, and other legal restrictions. If the use isn’t allowed by law, it can’t be the highest and best use.

Physically possible refers to whether the site can actually accommodate the use, considering factors like lot size, topography, access, utilities, and physical constraints.

Financially feasible ensures the use can generate a positive return after considering costs, market demand, and financing viability. An option that can’t meet a minimum profitability threshold isn’t viable.

Maximally productive (often described as the use that yields the greatest net return) looks at which feasible use provides the highest value over time given market conditions and investment risk.

Social acceptability, while it can influence market demand, isn’t treated as a formal test criterion in this context.