Certified Residential Appraiser Practice Exam

What is the value of land typically assessed as?

1. Developed

2. Improved

3. Vacant

4. Occupied

The correct answer is: Vacant

The value of land is typically assessed as "vacant" because this classification reflects unimproved land, meaning there are no structures or significant enhancements attached to the property. Assessors evaluate vacant land based on factors such as size, location, zoning, and potential uses, which allows for an unbiased valuation of the land itself without the influence of existing buildings or improvements. In contrast, the other classifications such as developed, improved, or occupied generally indicate that there are structures or enhancements that need to be factored into the property's overall value. When land is assessed as vacant, it allows for a clearer understanding of its worth based solely on land characteristics, providing a baseline for further development potential. This approach is essential for appraisals that focus on the intrinsic value of the land in the real estate market.