A residential lot slopes 15% toward the street. An engineer estimates added foundation and grading costs, and paired sales show buyers pay less for comparable steep lots, with no view premium. What effect on value is indicated?
Correct Answer
D) A decrease, reflecting added costs and buyer resistance
The engineering cost estimate and the paired-sales discount, with no offsetting view premium, both point to lower value for this lot. Slope alone does not fix the direction of the effect; market evidence does, which is why the facts given here matter.
Why This Is the Correct Answer
The engineering cost estimate and the paired-sales discount, with no offsetting view premium, both point to lower value for this lot. Slope alone does not fix the direction of the effect; market evidence does, which is why the facts given here matter.
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Previous Question
An appraiser is valuing a 20-acre tract zoned agricultural but crossed by a deeded right-of-way allowing public vehicular access to a lake. The right-of-way, established in 1958, is 30 feet wide and bisects the property diagonally. No compensation was paid at creation, and the landowner receives no income from it. For appraisal purposes, how should this right-of-way be classified?
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In a covered Fannie Mae measurement, a two-story foyer has a true open void with no second-floor surface; it is not a stair opening. How is that void treated in the upper-level finished area?