Property Valuation
A Pennsylvania appraiser estimating the value of a 10-acre commercial parcel uses which unit of comparison?
APrice per square foot (interior building area)
BPrice per acre or price per square foot (land area)
CPrice per linear foot of street frontage
DEither price per acre or price per square foot of land, whichever is most meaningful to market participants✓ Correct
Explanation
Commercial land is typically compared on a price per acre or price per square foot of land area basis. The appropriate unit depends on what local market participants use — industrial land in the Lehigh Valley may be compared by price per square foot; rural agricultural land by price per acre.
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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.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Math Concepts
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