Fundamental of Real Property Appraisal - Land Description and Land Valuation

Question 1

The four factors affecting land values are as follows:

Answer 1

Physical, Economic, Governmental, Social

Question 2

The Principle of ________ _________ states that returns to land are what remains after returns to labor, management, and capital are satisfied.

Answer 2

Surplus Productivity

Question 3

List the six methods of land valuation:

Answer 3

1. Direct sales comparison
2. Allocation
3. Abstraction
4. Anticipated use or development
5. Capitalization of ground rent
6. Land residual technique

Question 4

A complete set of __________ maps showing boundaries, parcel size, sales information, and other relevant features of all parcels in a jurisdiction is a necessary tool for assessors.

Answer 4

cadastral

Question 5

The practice of measuring the direction of property lines with compass bearings and the distance with measuring chains or tapes in order to obtain a property description is known as _______ and ________.

Answer 5

metes, bounds

Question 6

A township in the Public Land Survey System contains _____ sections, with each section containing _____ acres.

Answer 6

36, 640

Question 7

Improvements such as streets, sidewalks and the availability of utilities are considered _______ improvements.

Answer 7

off-site

Question 8

When land is valued by using the direct sales comparison approach, sales must first be _________ into homogeneous groups.

Answer 8

stratified

Question 9

Which method of land valuation compares the property being appraised to comparable vacant parcels that have recently sold?

Answer 9

direct sales comparison

Question 10

Front foot, square foot and acre are examples of basic ________________.

Answer 10

unit of comparison

Question 11

In the direct sales comparison approach to land valuation, adjustments are always made to the ______________ property, never to the ________property.

Answer 11

comparable, subject

Question 12

If the comparable lot that sold is superior in some aspect the subject lot, a ___________ adjustment would be made to the comparable property.

Answer 12

negative

Question 13

A method of valuing land that subtracts the depreciated value of the improvement from the sale price is know as ____________.

Answer 13

abstraction

Question 14

The preferred method of valuing land if adequate data is available is the _________.

Answer 14

direct sales comparison method

Question 15

A land-to-building ratio of 1:4 means land represents __ percent of the value.

Answer 15

20

Question 16

The appropriate map scale for suburban areas and small towns is _________.

Answer 16

1” = 200’

Question 17

The appropriate map scale for rural areas is __________.

Answer 17

1” = 400’

Question 18

The merging of adjacent parcels into one common ownership without creating an increase in the unit value is known as _________.

Answer 18

assemblage

Question 19

The property account number, linking ownership records without creating an increase in unit value is known as the ________ __________.

Answer 19

parcel identifier

Question 20

Land that has been developed to the extent that it is ready to be built upon is considered a ____.

Answer 20

site

Question 21

The concept of ____________________ means that the market value of vacant land depends on potential use rather than current use alone.

Answer 21

highest and best use

Question 22

Factors affecting land values such as size, topography, and location are termed _________________ factors.

Answer 22

physical (environmental)