Supported primary-site value is $305,000. An extra strip has no independent feasible use or sale; market evidence supports its contribution to the whole at $18,000, not already included in the primary figure. What total land indication follows? Do not substitute a hypothetical independently buildable value for its actual supported contribution.
Correct Answer
D) $323,000
Total land contribution=$305,000+$18,000=$323,000. Common errors: leaving out the strip contribution gives $305,000; subtracting the strip contribution instead of adding it gives $287,000; reporting only the strip contribution gives $18,000.
Why This Is the Correct Answer
Option D is correct because the total land indication is the primary site value plus the strip's supported contribution: $305,000 + $18,000 = $323,000. The contribution is not already included in the primary figure, so it is added once.
Why the Other Options Are Wrong
Option A: $18,000
Option A, $18,000, is only the strip's contribution. The total land indication must also include the primary site: $305,000 + $18,000 = $323,000.
Option B: $287,000
Option B, $287,000, comes from subtracting the strip contribution ($305,000 - $18,000) instead of adding it. Since the strip adds value, the total is $305,000 + $18,000 = $323,000.
Option C: $305,000
Option C, $305,000, leaves out the strip's supported contribution. The total land indication is $305,000 + $18,000 = $323,000.
Surplus adds, excess sells
Surplus land adds its contribution to the main site; excess land can be valued as something that could be sold separately.
How to use: Use this to decide how an extra parcel of land is treated in a site valuation.
Exam Tip
When a strip has no independent use, add its supported contribution rather than a hypothetical stand-alone lot value.
Common Mistakes to Avoid
- -Valuing surplus land as if it were an independent buildable lot
- -Subtracting the contribution instead of adding it
- -Omitting the surplus contribution entirely
Concept Deep Dive
Analysis
This question tests adding a surplus land contribution to a primary site value. The strip has no independent use, so it is valued at its supported contribution to the whole, which is then added to the primary site value.
Background Knowledge
Excess land can be sold separately or support an independent use, while surplus land lacks an independent highest and best use and contributes only to the whole. Surplus land is valued by its supported contribution, not as if it were an independently buildable site.
Real-World Application
An appraiser values a house lot that includes a narrow side strip too small to build on separately. Market data shows buyers pay about $18,000 more for the extra yard, so the appraiser adds that contribution to the $305,000 primary site value.
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