If you’ve spent any time around real estate — especially land — you’ve probably heard the phrase highest and best use.

It sounds important.
It sounds official.
And it’s often used without much explanation.

In reality, highest and best use (HBU) is one of the most misunderstood concepts in land valuation — and one of the most critical.

This post explains [...]

By now, two things should be clear:

• Land is fundamentally different from houses
• Value can’t be determined until buildability and highest and best use are understood

Yet this is where many land valuations still go sideways.

Someone pulls a few “comps,” averages the numbers, and calls it a day.

That approach works poorly for land — and often costs owners real [...]