Certified Residential Appraiser Practice Exam

Which of the following enhances the functionality of the land?

1. Legal Restrictions

2. Onsite Improvements

3. Raw Land Conditions

4. Zoning Designations

The correct answer is: Onsite Improvements

Onsite improvements significantly enhance the functionality of the land by adding features and infrastructure that make it more usable and valuable. These improvements can include grading, landscaping, driveways, buildings, utilities, and other enhancements that provide practical use and aesthetic appeal to the property. By transforming raw land into a developed parcel, onsite improvements directly support activities and can improve overall property value. In contrast, legal restrictions, zoning designations, and raw land conditions typically dictate how land can or cannot be used, rather than enhancing its functionality. While these factors play critical roles in determining property use and potential, they do not actively improve the land's utility or effectiveness as a site for development or habitation. Therefore, the presence of onsite improvements stands out as the key factor in enhancing land functionality.