Certified Residential Appraiser Practice Exam

Which term refers to improved land?

1. Site

2. Utility

3. Fixture

4. Desire

The correct answer is: Site

The term that refers to improved land is "site." In real estate and appraisal contexts, a site typically denotes a piece of land that has been modified or developed to enhance its value and usability, often through the addition of infrastructure, buildings, or landscaping. This improvement distinguishes it from raw or unimproved land, which has no enhancements and might not be suitable for immediate use in its current state. Understanding what constitutes a site is crucial for appraisers, as they assess not just the physical characteristics of the land but also its enhancements that can contribute to its overall value. An improved site can provide greater utility for various purposes, whether residential, commercial, or industrial. The other terms—utility, fixture, and desire—refer to different concepts. Utility pertains to the usefulness of a property or feature, a fixture refers to objects that are permanently attached to a property, and desire relates to market sentiment or demand, none of which specifically indicate improved land. Thus, the choice of "site" comprehensively embodies improved land in the context of real estate appraisal.