Property ValuationIntermediateArizona Exam

Excess land in appraisal refers to:

ALand that exceeds the maximum density permitted under the current zoning and therefore cannot be developed without a variance, reducing overall property value

BLand in excess of what is needed to support the highest and best use, which may have separate valueCorrect

CA portion of the site that is unusable due to soil contamination, topographic constraints, or regulatory setbacks preventing any productive use

DThe difference between a site's total area and the minimum lot size required by the applicable zoning district, representing the maximum amount that can be divided off

Why Land in excess of what is needed to support the highest and best use, which may have separate value Is Correct

Answer B: Land in excess of what is needed to support the highest and best use, which may have separate value

Excess land is land beyond what is necessary to support the highest and best use of the primary improvement. Unlike surplus land, excess land has the potential to be sold separately from the primary property.

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.

Key Property Valuation Terms in This Question

Appraisal

A professional estimate of a property's market value prepared by a licensed or certified appraiser.

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

Variance

Official permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.

People Also Study

Key Terms to Know

Appraisal

A professional estimate of a property's market value prepared by a licensed or certified appraiser.

Comparable Sales (Comps)

Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.

Depreciation

A reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

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