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Property DescriptionMEDIUM20% of exam

A property contains 2.5 acres. A wetland delineation shows that 0.8 acres are jurisdictional wetlands that cannot be developed. What percentage of the site is developable?

Correct Answer

B) 68%

Developable area = 2.5 - 0.8 = 1.7 acres. Percentage developable = (1.7 ÷ 2.5) × 100 = 68%. The presence of jurisdictional wetlands significantly reduces the usable area and affects the property's development potential and value.

Answer Options
A
32%
B
68%
C
72%
D
80%

Why This Is the Correct Answer

Option B is correct because it follows the proper calculation sequence. First, subtract the wetland area from total acreage: 2.5 - 0.8 = 1.7 developable acres. Then calculate the percentage: (1.7 ÷ 2.5) × 100 = 68%. This represents the portion of the property that can legally be developed for its intended use.

Why the Other Options Are Wrong

Option A: 32%

32% incorrectly represents the percentage of wetlands (0.8 ÷ 2.5 = 32%), not the developable area. This is the inverse of what the question asks for.

Option C: 72%

72% appears to be a calculation error, possibly from incorrectly subtracting 32% from 100% and making an arithmetic mistake, or from using wrong numbers in the formula.

Option D: 80%

80% would result from incorrectly calculating (2.0 ÷ 2.5) × 100, suggesting the candidate subtracted only 0.5 acres instead of 0.8 acres of wetlands.

TOTAL minus TROUBLE equals USABLE

Remember: TOTAL acreage minus TROUBLE areas (wetlands, easements, setbacks) equals USABLE area. Then divide USABLE by TOTAL and multiply by 100 for percentage.

How to use: When you see any land use restriction question, immediately identify the TOTAL area, subtract all TROUBLE areas to get USABLE area, then calculate the percentage using USABLE ÷ TOTAL × 100.

Exam Tip

Always double-check whether the question asks for developable percentage or restricted percentage - they are inverses of each other and both commonly appear on exams.

Common Mistakes to Avoid

  • -Calculating the percentage of restricted area instead of developable area
  • -Forgetting to convert the decimal to a percentage by multiplying by 100
  • -Making arithmetic errors in the subtraction or division steps

Concept Deep Dive

Analysis

This question tests the appraiser's ability to calculate developable land area when environmental restrictions are present. Wetland delineation is a critical factor in property valuation as jurisdictional wetlands are protected by federal and state regulations, making them undevelopable. The calculation requires determining the net usable area by subtracting restricted areas from total acreage, then converting to a percentage. Understanding how environmental constraints affect highest and best use analysis is fundamental to accurate property valuation.

Background Knowledge

Appraisers must understand that jurisdictional wetlands are regulated by the Clean Water Act and enforced by the Army Corps of Engineers, making them essentially undevelopable. Wetland delineation studies are required environmental assessments that identify these protected areas and directly impact a property's highest and best use analysis.

Real-World Application

In practice, appraisers must review environmental reports, wetland delineations, and regulatory maps before determining highest and best use. A property with 68% developable area might still be viable for development, but the wetland restriction would significantly impact value compared to a fully developable site.

wetland delineationjurisdictional wetlandsdevelopable areahighest and best use

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