Why might two lots of identical area sell for different amounts on the same street?
Correct Answer
B) Shape, frontage and topography differ between them
Why this is correct: Lot value is determined by many factors beyond raw area. Shape (e.g., rectangular vs. irregular), frontage (width along the street), topography (slope), utility availability, and zoning all influence the buildable envelope and usability, leading to different market values even for lots with the same acreage on the same street. Why the other choices are wrong: 'Area is the only determinant of a lot's value' is wrong; many factors matter. 'Identical lots always sell for identical prices' is wrong; market conditions and buyer motivations vary. 'The later sale must have been improperly recorded' is wrong; price differences usually have legitimate explanations. Exam tip: Think 'value is in the buildable area,' not just total area. Shape, frontage, and slope are key value influencers.
Why This Is the Correct Answer
Why this is correct: Lot value is determined by many factors beyond raw area. Shape (e.g., rectangular vs. irregular), frontage (width along the street), topography (slope), utility availability, and zoning all influence the buildable envelope and usability, leading to different market values even for lots with the same acreage on the same street. Why the other choices are wrong: 'Area is the only determinant of a lot's value' is wrong; many factors matter. 'Identical lots always sell for identical prices' is wrong; market conditions and buyer motivations vary. 'The later sale must have been improperly recorded' is wrong; price differences usually have legitimate explanations. Exam tip: Think 'value is in the buildable area,' not just total area. Shape, frontage, and slope are key value influencers.
More Land/Site Questions
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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?
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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?
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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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