What does 'plottage value' mean in Alaska real estate?
Why The incremental value created when combining multiple smaller parcels into a larger parcel Is Correct
Answer B: The incremental value created when combining multiple smaller parcels into a larger parcel
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
People Also Study
Related Alaska Questions
- An Alaska property owner wants to divide a large parcel into multiple smaller lots for sale. This process is called:Land Use & Zoning
- An Alaska property is worth $500,000 and depreciates in value by 2% per year for 5 years. What is the value after 5 years?Real Estate Math
- An Alaska appraiser values a 5-acre rural parcel. Comparable sales exist for 2-acre parcels, but the 5-acre parcel does not simply equal 2.5 times the value of a 2-acre parcel. This reflects the principle of:Property Valuation
- An Alaska property sold for $485,000. The appraiser determines the land is worth $95,000. The improvements' depreciated value (from the cost approach) is:Property Valuation
- An Alaska housing provider who requires a larger deposit from families with children while charging single adults the standard deposit is:Fair Housing
- The appraisal approach most commonly used to value single-family residential properties in Alaska is the:Property Valuation
- In Alaska, assessed value for property tax purposes is set by boroughs. If a property has a market value of $400,000 and the assessment ratio is 80%, the assessed value is:Property Valuation
Key Terms to Know
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →