Property Valuation
The 'land-to-value ratio' in an appraisal is significant because it:
ADetermines the assessed value for property taxes
BIndicates the proportion of the property's total value attributable to the land versus improvements✓ Correct
CSets the maximum mortgage amount
DEstablishes the zoning designation
Explanation
The land-to-value (or land-to-building) ratio indicates how much of the total property value is attributable to the land versus the improvements. In high-land-value markets, the ratio is higher. The ratio is important for depreciation calculations, investment analysis, and understanding a property's redevelopment potential.
Related Alaska Property Valuation Questions
- Under USPAP, an Alaska appraiser who has a financial interest in a property they are appraising must:
- An Alaska appraiser who determines that an existing commercial building's highest and best use is as a parking lot is suggesting that:
- When an Alaska appraiser 'brackets' the subject property with comparables, they are:
- A 'before and after' method is used in Alaska eminent domain appraisals to:
- An Alaska appraiser who determines a comparable is 'physically inferior' to the subject property will make which adjustment?
- In Alaska, the appraisal concept of 'market exposure time' is relevant because it:
- In Alaska, the 'economic life' of a building refers to:
- In Alaska, when two appraisers value the same property and reach different conclusions, the most likely explanation is:
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →