Exam 10: Valuing the Site

Land or site value estimates are important only in the appraisal of vacant properties.

The price per dwelling unit may be more important in multiple-residential land appraisals than the price per square foot.

Whether the land is actually vacant or improved, it should be appraised as if it were vacant.

The greatest weight should generally be given to the comparable sales that require the least adjustment.

A subordination clause in a land sales agreement often involves seller financing.

An opinion of highest and best use is required for all land appraisals made for the purpose of estimating market value.

The land residual method is based on the principle of surplus productivity.

An adjacent site purchased by the local grocer for business expansion would be a good market comparable in your appraisal of a parcel one block away with the same size, shape, and zoning.

Prior sales of the subject property should be noted, but are always irrelevant to the value of land.

Land value estimates by the abstraction method routinely are just as accurate as those arrived at by the market method.