Which unit of comparison best suits a lakefront residential lot?
Correct Answer
B) Price per front foot of shoreline
Why this is correct: For lakefront property, the primary value driver is direct access to the water, measured by front footage. Buyers pay for waterfront frontage; total acreage is often secondary. Why the other choices are wrong: 'Price per acre of the total parcel' is more common for agricultural or large rural tracts. 'Price per square foot of land area' is typical for urban lots where buildable area is key. 'Price per dwelling unit permitted' is used for income-producing or development properties. Exam tip: For any property type, identify the feature that drives value—for waterfront, it's frontage.
Why This Is the Correct Answer
Why this is correct: For lakefront property, the primary value driver is direct access to the water, measured by front footage. Buyers pay for waterfront frontage; total acreage is often secondary. Why the other choices are wrong: 'Price per acre of the total parcel' is more common for agricultural or large rural tracts. 'Price per square foot of land area' is typical for urban lots where buildable area is key. 'Price per dwelling unit permitted' is used for income-producing or development properties. Exam tip: For any property type, identify the feature that drives value—for waterfront, it's frontage.
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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