What percentage of value is assigned to the part of the property furthest from the road according to the 65/35 Rule?

Prepare for the DPA Appraisal Fundamentals Test. Engage with comprehensive flashcards and multiple choice questions, complete with detailed hints and explanations. Ensure success in your exam!

The 65/35 Rule indicates that in certain property valuation scenarios, about 65% of a property's value is associated with the area closest to the road, while the remaining 35% pertains to the portion of the property that is further away from the road. This allocation is based on the assumption that properties closer to the road typically have better access and visibility, which can significantly enhance their market value.

By understanding this principle, one can appreciate why the answer reflects the established value distribution in real estate appraisal. The higher value assigned to the portion of the property nearest to the road recognizes the common influence of location on property desirability. Therefore, the correct percentage assigned to the part of the property that is furthest from the road, according to the 65/35 Rule, is indeed 35%.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy