Which feature is credited with accounting for about 40 percent of value in the riverfront example?

Which feature is credited with accounting for about 40 percent of value in the riverfront example?

• A. River frontage
• B. Proximity to highway
• C. Building age
• D. Zoning compliance

Answer: (A)

Location effects can dominate value when the feature is highly desirable. In the riverfront example, having river frontage creates a strong premium because buyers value water access and views, so that feature is credited with about 40% of the total value. Proximity to a highway influences accessibility but doesn’t carry the same weight here, and building age or zoning compliance also affect value, just not to the same extent as the prime riverfront location.

Location effects can dominate value when the feature is highly desirable. In the riverfront example, having river frontage creates a strong premium because buyers value water access and views, so that feature is credited with about 40% of the total value. Proximity to a highway influences accessibility but doesn’t carry the same weight here, and building age or zoning compliance also affect value, just not to the same extent as the prime riverfront location.