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%
Why this is correct: Developable area = Total area - Wetland area = 2.5 acres - 0.8 acres = 1.7 acres. Percentage developable = (Developable area / Total area) x 100 = (1.7 / 2.5) x 100 = 68%. Why the other choices are wrong: 80% incorrectly uses 0.8/2.5. 72% is a miscalculation. 32% is the percentage of wetlands, not the developable area. Exam tip: For percentage problems, always set up: (Part / Whole) x 100. Identify which is the 'part'—here, it's the developable area.
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: 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.
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: 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.
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.
More Property Description Questions
A property is located in FEMA flood zone AE with a base flood elevation of 485 feet. The lowest floor is at 487 feet. What is the significance for the appraisal?
In a leasehold estate, the tenant's interest in the property is called:
A ground lease typically involves:
An appraisal of a rented single-family home where the lease runs another four years at below-market rent is valuing which interest, from the owner's side?
A duplex operates legally in a zone later rezoned single-family. What is its status, and the key appraisal question?
Which component carries roof loads down to the foundation in a typical wood-framed house?
A property owner wants to operate a daycare center in an area zoned for single-family residential use. What would they most likely need to obtain?
A deed restriction that prohibits the construction of fences over 4 feet in height is an example of:
Room count in residential appraisal conventionally excludes:
Type I construction classification typically refers to buildings with:
People Also Study
Real Estate Market
13.6% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam
Income Approach
8.2% of exam