Which of the following is an off-site improvement rather than a site improvement?
Correct Answer
B) The public street serving the parcel
The public street serving the parcel is off-site because it lies outside the parcel boundaries. Grading, a driveway and landscaping within the parcel are on-site work. Funding arrangements can vary and do not define the distinction. Analyze the market contribution and any applicable obligations separately from construction cost.
Why This Is the Correct Answer
Option B is correct because the public street serving the parcel lies outside the parcel's boundaries, making it an off-site improvement. Off-site improvements include infrastructure such as streets, water, sewer and utility systems. Who paid for it does not change the classification.
Why the Other Options Are Wrong
Option A: Grading and filling within the parcel
Option A, grading and filling within the parcel, is wrong because the work is done inside the lot lines. Grading and fill prepare the site itself and are site improvements.
Option C: A driveway laid across the front yard
Option C, a driveway laid across the front yard, is wrong because the driveway sits on the parcel. It is an on-site improvement, not an off-site one.
Option D: Landscaping planted around the house
Option D, landscaping planted around the house, is wrong because landscaping within the parcel is a site improvement. It improves the lot itself rather than infrastructure outside it.
Lot line decides
Ask where the improvement sits: inside the lot line it is a site improvement, outside the lot line it is off-site.
How to use: Use this whenever you must classify an improvement as on-site or off-site.
Exam Tip
Focus on location relative to the parcel boundary, not on who paid for the improvement.
Common Mistakes to Avoid
- -Classifying an improvement by who paid for it
- -Treating a driveway or landscaping as off-site
- -Assuming off-site improvements have no effect on site value
Concept Deep Dive
Analysis
This question tests the distinction between off-site and site (on-site) improvements. The location of the improvement relative to the parcel boundary decides the classification. Public streets, sewers and utility mains outside the parcel are off-site, while work within the lot lines is on-site.
Background Knowledge
Site improvements are made within the property boundaries, such as grading, drainage, driveways, walks, landscaping and utility connections on the lot. Off-site improvements are outside the boundaries but serve the site, such as streets, curbs, sidewalks and utility mains.
Real-World Application
An appraiser describing a new subdivision lot notes paved public streets, curbs and municipal sewer as off-site improvements. The appraiser lists the finished grade, driveway and landscaping separately as site improvements in the cost approach.
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
The subject vacant site has off-site utilities available. A comparable vacant site without utilities sold for $310,000. Paired land sales indicate that sites with a utilities connection sell for $38,000 more than sites without one. No other adjustments apply. What is the indicated value of the subject site?
Next Question
A comparable vacant site sold for $530,000. Unlike the comparable, the subject site is near an electrical utility substation, which makes it inferior. Paired land sales show a proximity stigma discount of $79,000. No other adjustments apply. What is the indicated value of the subject site?