Why must the appraiser identify whether a site is served by a private road?
Correct Answer
B) Maintenance liability and access rights differ
Why this is correct: Private roads involve shared maintenance costs and depend on recorded easements for legal access. These factors affect marketability, buyer appeal, and potentially financing, which are reflected in market value. Why the other choices are wrong: 'Private roads are not permitted in most zoning' is false; they are often permitted. 'Sites on private roads cannot be financed at all' is an overstatement; financing may be more difficult but is not impossible. 'Private roads make a survey legally unnecessary' is incorrect; a survey is still important to define boundaries and easements. Exam tip: Always investigate and disclose access and maintenance arrangements, as they are critical to marketability and value.
Why This Is the Correct Answer
Why this is correct: Private roads involve shared maintenance costs and depend on recorded easements for legal access. These factors affect marketability, buyer appeal, and potentially financing, which are reflected in market value. Why the other choices are wrong: 'Private roads are not permitted in most zoning' is false; they are often permitted. 'Sites on private roads cannot be financed at all' is an overstatement; financing may be more difficult but is not impossible. 'Private roads make a survey legally unnecessary' is incorrect; a survey is still important to define boundaries and easements. Exam tip: Always investigate and disclose access and maintenance arrangements, as they are critical to marketability and value.
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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