Land Valuation Review Questions PDF

The four factors affecting land values are as follows: A. Demographic, Political, Social, Financial B. Technological, Environmental, Cultural, Legal C. Physical (environmental), Economic, Governmental, Social D. Geographic, Financial, Community, Historical Reason: Land values are influenced by four m...

The four factors affecting land values are as follows: A. Demographic, Political, Social, Financial B. Technological, Environmental, Cultural, Legal C. Physical (environmental), Economic, Governmental, Social D. Geographic, Financial, Community, Historical Reason: Land values are influenced by four main factors: physical (environmental), economic, governmental, and social, which together determine the overall suitability and value of the land. 2. The Principle of Surplus Productivity states that returns to land are what remain after returns to labor, management, and capital are satisfied. A. supply and demand B. surplus productivity C. change D. anticipation 3. List the six methods of land valuation: A. Market analysis, Allocation, Replacement, Anticipated profit, Rental analysis, Depreciation method B. Cost analysis, Income approach, Market adjustment, Depreciation, Gross land assessment, Utility value C. Direct sales comparison, Allocation, Abstraction, Anticipated use or development, Capitalization of ground rent, Land residual technique D. Construction cost, Allocation, Comparative sales, Replacement, Land use adjustment, Market estimation Reason: The six methods for valuing land include direct sales comparison, allocation, abstraction, anticipated use, capitalization of ground rent, and the land residual technique. 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. A. Zoning B. Survey C. Cadastral D. Parcel Reason: Cadastral maps are used to show parcel boundaries, sizes, and other essential property features, making them necessary for assessors to evaluate land within a jurisdiction. 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 _________________________. A. Parcel mapping B. Chain surveying C. Metes and bounds D. Compass zoning Reason: "Metes and bounds" is a system of describing property boundaries using compass bearings and distances, providing detailed property descriptions. 6. A township in the Public Land Survey System contains _________ sections, with each section containing _________ acres. A. 32 - 620 B. 36 - 320 C. 36 - 640 D. 30 - 640 Reason: In the Public Land Survey System, a township is divided into 36 sections, with each section containing 640 acres. 7. Using the Public Land Survey System, the shaded portion of land labeled "A" above is described as the ___________. A. S 1/2 NE 1/4 NE 1/4 B. W 1/2 SW 1/4 SW 1/4 C. N 1/2 SE 1/4 NW 1/4 D. E 1/2 NW 1/4 NE 1/4 Reason: The description uses the Public Land Survey System terminology, indicating specific portions of land by their directional subdivisions. 8. The shaded area in the previous question contains _________ acres. A. 20 B. 40 C. 80 D. 10 Reason: Each 1/4 of a 1/4 section in the PLSS contains 40 acres. Since it's the south half, it would contain 20 acres. 9. When land is valued by using the direct sales comparison approach, sales must first be ______________ into homogeneous groups. A. Aggregated B. Combined C. Sorted D. Stratified Reason: Sales must be stratified into homogeneous groups to accurately compare similar properties when valuing land using the direct sales comparison approach. 10. Improvements such as streets, sidewalks, and the availability of utilities are considered _______________ improvements. A. On-site B. Off-site C. Interior D. Community Reason: Off-site improvements refer to infrastructure improvements that serve the property, such as streets, sidewalks, and utilities, but are not located directly on the property. 11. Which method of land valuation compares the property being appraised to comparable vacant parcels that have recently sold? A. Allocation method B. Abstraction method C. Cost of development method D. Direct sales comparison Reason: The direct sales comparison method values a property by comparing it to similar properties that have recently sold. 12. Front foot, square foot, and acre are examples of basic _________________. A. Units of comparison B. Units of measurement C. Land standards D. Valuation metrics Reason: Units of comparison, such as front foot, square foot, and acre, are used to quantify and compare property values in land appraisal. 13. In the direct sales comparison approach to land valuation, adjustments are always made to the _______________ property, never to the __________ property. A. Subject, comparable B. Improved, vacant C. Superior, inferior D. Comparable, subject Reason: Adjustments are made to the comparable property to reflect differences with the subject property. 14. If a comparable lot that sold is superior in some aspect to the subject lot, a __________ adjustment would be made to the comparable property. A. Negative B. Positive C. Neutral D. Zero Reason: A negative adjustment is made when the comparable property is superior to bring its value in line with the subject property. 15. A method of valuing land that subtracts the depreciated value of the improvement from the sale price is known as _____________. A. Allocation B. Abstraction C. Anticipation D. Substitution Reason: The abstraction method involves subtracting the depreciated value of improvements to estimate the land value. 16. The preferred method of valuing land if adequate data is available is the: A. Abstraction method B. Allocation method C. Cost of development method D. Direct sales comparison method Reason: The direct sales comparison method is preferred when adequate sales data is available, as it reflects the market conditions directly. 17. A land-to-building ratio of 1:4 means land represents __________ percent of the value. A. 20% B. 25% C. 40% D. 50% Reason: A land-to-building ratio of 1:4 means that the land is 20% of the combined value of land and building. 18. The appropriate map scale for suburban areas and small towns is __________. A. 1" = 200' B. 1" = 400' C. 1" = 100' D. 1" = 300' Reason: The map scale 1" = 200' is typically used for suburban areas and small towns to provide sufficient detail for analysis. 19. The appropriate map scale for rural areas is __________. A. 1" = 100' B. 1" = 400' C. 1" = 600' D. 1" = 200' Reason: The scale 1" = 400' is suitable for rural areas due to larger parcel sizes and less need for detailed information. 20. The property account number, linking ownership records, tax maps, and assessment records, is known as the __________. A. Property code B. Account reference C. Parcel Identifier D. Assessor’s ID Reason: The Parcel Identifier (PIN) is used to link various property-related records, including ownership, taxes, and assessments. 21. Land that has been developed to the extent that it is ready to be built upon is considered a __________. A. Site B. Parcel C. Lot D. Section Reason: A "site" refers to land that is fully prepared for construction, with all necessary improvements in place. 22. The concept of __________ means that the market value of vacant land depends on potential use rather than current use alone. A. Supply and demand B. Anticipation C. Change D. Highest and best use Reason: Highest and best use refers to the most profitable legal use of vacant land, which determines its value beyond its current use. 23. Factors affecting land values such as size, topography, and location are termed __________ factors. A. Governmental B. Social C. Physical (environmental) D. Economic Reason: Physical (environmental) factors, such as size, topography, and location, directly affect the value of land.