What potential valuation effect should be investigated for a site in a designated flood hazard area?
Correct Answer
B) Flood risk, development constraints and applicable insurance costs may reduce appeal
Investigate flood risk, applicable development restrictions, utility and relevant insurance costs using reliable information, and analyze buyer reaction. A flood designation alone does not establish mandatory insurance on vacant land, automatic open-space zoning or a fixed value reduction.
Why This Is the Correct Answer
Investigate flood risk, applicable development restrictions, utility and relevant insurance costs using reliable information, and analyze buyer reaction. A flood designation alone does not establish mandatory insurance on vacant land, automatic open-space zoning or a fixed value reduction.
More Land/Site Questions
How should an appraiser account for a site's access to public sewer compared with competing sites that require septic systems?
Which fact, if supported by competitive-market evidence, most directly supports a unit-price premium for an otherwise comparable site?
A rectangular site's frontage is doubled while its depth is halved, keeping area constant. What is the likely value effect in a retail district?
A downtown site's zoning height limit is reduced from six stories to three. Buyers in this market had been paying for six-story development potential. What effect on land value is most supportable?
A zoning change increases permitted density from four to eight units per acre. What is the likely effect on site value?
Using the allocation method, market evidence supports a typical land-to-total-property-value ratio of 28% for similar improved properties in the subject’s location. An improved comparable sold for $825,000. What land (site) contribution is indicated by applying that ratio?
An appraiser is valuing a vacant site near a landfill. A similar vacant site that is not affected by the landfill sold for $480,000. Paired land sales indicate that proximity to the landfill lowers site prices by $70,000. No other adjustments apply. What is the indicated value of the subject site?
An appraiser is extracting site value from a $600,000 cash sale. The seller's records show an original construction cost of $250,000 and a depreciated book value of $110,000. The appraiser estimates current replacement cost new at $400,000 and accrued depreciation from all causes at $100,000. What is the indicated site value?
Three parcels assembled under single ownership (standard appraisal guidance assemblage) support separate as-is values of $290,000, $340,000, and $250,000. After assemblage for a higher-utility use, the combined site is valued at $1,050,000. Assemblage costs (demolition, legal, holding, and related) total $55,000. What is the indicated net plottage (plottage increment after assemblage costs)?
A comparable commercial site with 65 front feet sold for a cash-equivalent price of $585,000. Per standard appraisal guidance, sale price per front foot is a vacant-land unit of comparison when frontage is a primary value determinant. The subject site has 72 front feet and is otherwise similar. What indicated land value does the front-foot unit support before other adjustments?
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Previous Question
Three contiguous parcels used separately support market values of $165,000, $210,000, and $155,000. Assembled under single ownership for a higher-utility use (standard appraisal guidance assemblage), the combined site supports a market value of $595,000. Cash assemblage costs (closing, legal, and necessary demolition) total $80,000. What net incremental (plottage) value remains after those assemblage costs?
Next Question
An appraiser has estimated the value of an improved property at $1,450,000. Market data show that land represents 30% of total value for similar improved properties. Using the allocation method, what is the indicated land value?