Which physical characteristic would most reduce a site's value?
Correct Answer
D) Soil that will not support standard foundations
Why this is correct: Soil that will not support standard foundations would most reduce a site's value. Poor bearing capacity (e.g., expansive clay, peat, loose fill) imposes significant additional costs for special foundations like pilings, grade beams, or soil replacement. A buyer will discount the site's value by the estimated cost to remedy this deficiency. Why the other choices are wrong: "A rectangular shape with level topography," "Frontage on a paved and maintained street," and "Availability of public water and sewer service" are all positive characteristics that support or enhance value, not reduce it. Exam tip: Hidden physical deficiencies like poor soil can have a major impact on value, often equal to the cost to cure.
Why This Is the Correct Answer
Why this is correct: Soil that will not support standard foundations would most reduce a site's value. Poor bearing capacity (e.g., expansive clay, peat, loose fill) imposes significant additional costs for special foundations like pilings, grade beams, or soil replacement. A buyer will discount the site's value by the estimated cost to remedy this deficiency. Why the other choices are wrong: "A rectangular shape with level topography," "Frontage on a paved and maintained street," and "Availability of public water and sewer service" are all positive characteristics that support or enhance value, not reduce it. Exam tip: Hidden physical deficiencies like poor soil can have a major impact on value, often equal to the cost to cure.
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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