In the five-acre parcel scenario, the residential value is what amount?

• A. 225,000
• B. 250,000
• C. 217,800
• D. 272,250

Answer: (A)

The amount asked for is the value of the dwelling and its improvements, not the land itself. In a sales-comparison approach for a parcel, you estimate the total value of the entire property and separately estimate the land value. The residential value is found by subtracting the land value from the total value, leaving the portion attributed to the dwelling and its improvements.

In this five-acre scenario, if the total parcel value is given as 275,000 and the five acres of land themselves are valued at 50,000, the residential value would be 275,000 minus 50,000, which equals 225,000. That matches the correct choice because it isolates the value attributable to the dwelling and its improvements, independent of the land.