How should excess land be valued within an appraisal of the whole property?
Correct Answer
C) Valued separately and added to the remainder
Why this is correct: Excess land is land not needed to serve or support the existing improvement and may have a separate highest and best use. It should be valued separately based on its own utility and marketability, then added to the value of the improved portion. Why the other choices are wrong: 'Blended into a single rate for the entire parcel' would incorrectly obscure the different value contributions. 'Disregarded, as it serves no existing improvement' is wrong; excess land has value. 'Valued at the same rate per foot as the main site' is incorrect because excess land often has a different unit value. Exam tip: Excess = separate HBU, value separately. Surplus = supports primary use, value as part of the site.
Why This Is the Correct Answer
Why this is correct: Excess land is land not needed to serve or support the existing improvement and may have a separate highest and best use. It should be valued separately based on its own utility and marketability, then added to the value of the improved portion. Why the other choices are wrong: 'Blended into a single rate for the entire parcel' would incorrectly obscure the different value contributions. 'Disregarded, as it serves no existing improvement' is wrong; excess land has value. 'Valued at the same rate per foot as the main site' is incorrect because excess land often has a different unit value. Exam tip: Excess = separate HBU, value separately. Surplus = supports primary use, value as part of the site.
More Land/Site Questions
Under which condition is the land residual technique most applicable?
Why can the same physical parcel carry different values in two assignments?
In a built-up area where no vacant land has sold for years, which approach to site value is the usual fallback?
How is entrepreneurial profit treated in the subdivision development method?
A land comparable sold 18 months ago in a market rising about 4 percent a year. What adjustment direction applies?
Why does a developer's required profit rise for a longer subdivision project?
How does holding cost enter the valuation of land bought for future development?
Excess land is best described as land that has which characteristic?
Plottage value arises in which of the following situations?
Which of the following is an off-site improvement rather than a site improvement?
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