VALUATION QUIZ

Which of the following scenarios would least likely result in a significant depreciation of agricultural land itself, as opposed to assets attached to it?

• Severe soil erosion on a hilly rubber plantation due to inadequate terracing.

• The physical aging and wear and tear of an oil palm processing factory on the property.

• A prolonged period of heavy rainfall making rubber tapping unprofitable on the East Coast.

• A change in land use regulations prohibiting the cultivation of the existing crop.

A valuer is assessing an agricultural property in West Malaysia. The land is over 500 acres and is currently a single, undivided estate. Based on the provided information, how would the government's stance on fragmentation likely impact the valuation of this specific property compared to a similar, smaller holding?

• It would generally lead to a higher valuation due to the economies of scale associated with large estates.

• It would not affect the valuation, as the focus is solely on the agricultural potential of the crops.

• It would result in a lower valuation due to controls over subdivision and transfer.

• It would enhance the value, as large, intact estates are preferred for strategic national agricultural

A valuation report for an agricultural property indicates "deep peat" as the predominant soil type. Based on the general soil characteristics in Malaysia described in the text, what immediate implication does this specific soil type have for the land's agricultural value?

• It suggests the land is highly fertile and suitable for a wide variety of crops.

• It implies that significant additional outlay on manuring will be required, potentially affecting profitability.

• It indicates that the land is generally unsuitable for most agricultural purposes, though varying degrees of suitability exist for other soil types.

• It suggests excellent drainage and water retention capabilities, ideal for sensitive crops.

According to the valuation principles discussed, the fundamental reason for strictly requiring a comparable sale to be an "arm's length" transaction is to ensure which of the following?

• That the property's physical attributes are nearly identical to the subject property, thus minimizing the need for physical adjustments.

• That all parties involved in the transaction possess an equal and exhaustive understanding of the property's hidden defects.

• That the recorded sale price genuinely reflects the property's uninfluenced, true market value, free from compulsion or special relationships.

• That the transaction was conducted through a registered real estate agent, guaranteeing professional oversight and transparency.

According to the principles of valuation discussed in the text, what is the primary and ultimate basis for determining the appropriate magnitude of adjustments when using the comparison method?

• The valuer's logical reasoning and adherence to established mathematical formulas for property characteristics.

• The professional experience and personal judgment of the valuer, accumulated over years of practice.

• The prevailing market evidence that reflects how buyers and sellers react to specific differences between properties.

• Standardized allowances and fixed percentages for various property attributes as prescribed by professional bodies.