An important characteristic of land is that it may be modified or improved. Such improvements tend to increase the value of real estate. Which of the following is NOT an improvement?
Question & Answer
Review the question and all answer choices
A new access road
A new access road is a permanent infrastructure addition that increases the parcel's utility and value, which is the textbook definition of an improvement to land.
Utilities
Utility installations (water, sewer, gas, electric) are permanent, value-adding additions to the land and are classic examples of improvements.
A new house
A new house is a permanent structure built on the land — the quintessential improvement that converts raw land into developed real property.
Planted crops
Why is this correct?
Improvements are permanent, man-made additions to land that enhance its value, such as structures, roads, and utilities. Planted crops (emblements) are personal property — annual, harvestable, and not permanent — so they are not classified as improvements to real estate.
Continue Learning
Explore this topic in different formats
More property-valuation-financial-analysis Videos
Continue learning with related video lessons
All of the following affect real estate values in subsequent years, except:
2:41 • 0 views
The appraisal approach that estimates value by comparing a property to similar recently sold properties is the:
2:41 • 0 views
What type of depreciation is the most challenging to correct?
3:28 • 0 views
Which of the following is the least important factor used to determine the market value of a property?
2:48 • 0 views
The appraisal process which allocates a percentage of a property’s total value to the land and a percentage to the improvements is known as:
2:25 • 0 views
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.