Why can the same physical parcel carry different values in two assignments?
Correct Answer
C) Because the interests or dates may differ
Why this is correct: Value is specific to the property interest appraised (e.g., fee simple vs. leased fee) and the effective date of the appraisal. Different assignments can legitimately define these elements differently, leading to different value conclusions. Why the other choices are wrong: While appraisers can reach different conclusions, the principle reason is the defined elements of the assignment. Site value does not change seasonally in a professional context. Using more comparables is a methodological difference, not the fundamental reason. Exam tip: Value is not an absolute number. Always note: Value of what (interest), to whom, for what purpose, as of when, and under what conditions?
Why This Is the Correct Answer
Why this is correct: Value is specific to the property interest appraised (e.g., fee simple vs. leased fee) and the effective date of the appraisal. Different assignments can legitimately define these elements differently, leading to different value conclusions. Why the other choices are wrong: While appraisers can reach different conclusions, the principle reason is the defined elements of the assignment. Site value does not change seasonally in a professional context. Using more comparables is a methodological difference, not the fundamental reason. Exam tip: Value is not an absolute number. Always note: Value of what (interest), to whom, for what purpose, as of when, and under what conditions?
More Land/Site Questions
Under which condition is the land residual technique most applicable?
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?
Vacant lots in a subdivision sell for about $80,000 while finished homes there sell for about $400,000. Applying that relationship to a subject home that sold for $525,000, what site value does allocation indicate?
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