A locally market-supported depth table allocates value of otherwise matched standard-depth lots among front-to-rear quarters as 40%, 30%, 20% and 10%. The supported standard-depth value is $400,000. Under this specified local model, what indication applies to an otherwise matched subject containing only the front half? This table is not a universal valuation rule.
Correct Answer
D) $280,000
Front-half share = 0.40 + 0.30 = 0.70; indication = $400,000 × 0.70 = $280,000. The indicated result is $280,000. Common errors: counting only the front quarter gives $160,000; using half the value for half the depth gives $200,000; counting only the back quarter of the front half gives $120,000.
Why This Is the Correct Answer
Option D is correct because the front half includes the first and second quarters: 0.40 + 0.30 = 0.70, and $400,000 x 0.70 = $280,000. The front of a lot carries more value under this model because frontage access is concentrated there. The table is a local market-supported model, not a universal rule.
Why the Other Options Are Wrong
Option A: $120,000
Option A, $120,000, counts only the second quarter of the front half: $400,000 x 0.30 = $120,000. Both front quarters apply: $400,000 x 0.70 = $280,000.
Option B: $160,000
Option B, $160,000, counts only the front quarter: $400,000 x 0.40 = $160,000. The front half includes two quarters: $400,000 x (0.40 + 0.30) = $280,000.
Option C: $200,000
Option C, $200,000, assumes half the depth is worth half the value: $400,000 x 0.50 = $200,000. The table assigns 70% to the front half, giving $280,000.
4-3-2-1 from the front
Under this table, the quarters from front to rear carry 40, 30, 20 and 10 percent of value.
How to use: Use 4-3-2-1 to add the right quarters when a question gives this depth table.
Exam Tip
Add only the quarters the subject actually contains, starting from the front.
Common Mistakes to Avoid
- -Assuming value is proportional to depth
- -Counting only the front quarter
- -Treating a depth table as a universal rule
Concept Deep Dive
Analysis
This question tests application of a locally supported depth table. The table assigns 40%, 30%, 20% and 10% of standard-depth value to successive quarters from front to rear. A lot containing only the front half receives the first two quarters' shares.
Background Knowledge
Depth tables reflect the idea that land nearer the street often contributes more value per unit than land toward the rear. A table must be supported by local market evidence and is not a universal valuation rule. The 4-3-2-1 pattern is a well-known example used for illustration.
Real-World Application
In a downtown area, a market-supported depth table helps the appraiser value a shallow lot created when the rear of a standard lot was sold off. The appraiser sums the front quarters' shares to estimate the shallow lot's value.
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Previous Question
The subject site has 85 feet of frontage. Similar sites in the market area sell for $3,200 per front foot. What land value does the front-foot method indicate?
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Two contiguous parcels used separately support market values of $200,000 and $300,000. Assembled under single ownership for a higher-utility use (standard appraisal guidance assemblage), the combined site supports a market value of $620,000. Cash assemblage/closing costs necessary to complete the combination total $30,000. What net incremental (plottage) value remains after those assemblage costs?