Certified Residential Appraiser Practice Exam

What does "raw land" refer to?

1. Land with improvements

2. Land without any modifications

3. Land purchased and developed

4. Land that is currently under construction

The correct answer is: Land without any modifications

"Raw land" refers to land that is untouched and has not undergone any physical alterations or improvements. This means there are no buildings, roads, utility connections, or other developments present on the property. It is in its natural state, which may include natural features like trees, hills, or water bodies. This distinction is important in real estate and appraisal, as raw land is typically assessed differently than improved land, which has enhancements that increase its utility and value. The other choices reflect various states of land development but do not align with the definition of "raw land." For instance, land with improvements has undergone alterations that enhance its use and value, while land purchased and developed indicates that it has been transformed from its original state. Land under construction suggests that improvements are actively being made, further contradicting the concept of raw land.