2.3.3.1.1. Four Tests.The four tests of highest and best use are physically possible, legally permissible, financially feasible, and highest value. Each of these four criteria must be addressed in the appraisal report. The level of supporting data and analysis presented in the report for each criteria will depend in part on the complexity of the appraisal problem. 

In all assignments, the appraiser must describe the analysis developed under Section 1.4 concerning the highest and best use of the property as if vacant. The physical characteristics of the property that impact value must be addressed. Property size, shape, topography, access, road frontage, and utilities are all examples of physical characteristics of a property that may influence use and value and should be described in adequate detail for the client and intended users to understand how they may influence the determination of highest and best use. 

The appraiser must describe the legal constraints on the property that were identified and analyzed under Sections 1.3.1.3 and 1.4.5. Zoning requirements, height restrictions, setback and open space requirements, and all other legal constraints on the property should be described and their impact discussed. If the appraiser concludes a highest and best use that will require rezoning of the property, the investigations and analyses developed under Section 1.3.1.3 concerning the probability of obtaining that zoning change should be reported here in sufficient detail for the client and intended users to understand the reasons for the conclusion. If the appraiser concludes that the highest and best use requires some other form of government approval, the investigations and analyses developed under Sections 1.3.1.3 and 1.4.5 concerning the probability of obtaining those approvals must be described in sufficient detail for the client and intended users to understand the reasons for the conclusion. 

The financial feasibility of those uses, which are both physically possible and legally permitted, should be addressed. All feasibility or comparative studies developed under Section 1 should be described here, so the client and intended users can understand those uses that may have been eliminated in that analysis. Finally, the appraiser should discuss the use of the property as if vacant, which results in the highest value, and the analysis that supports that conclusion. The appraiser should identify the timing of the use and the likely purchaser and user. 

If the property contains improvements, the appraiser must address the highest and best use as improved. The same process described above should be followed. This analysis is focused on the contribution of the improvements to the property overall, taking into account the highest and best use of the property as if vacant. After addressing each of the four tests and making a determination of the highest and best use as improved, the appraiser should identify the timing of the use and the likely purchaser and user.