What does the term "excess land" imply in appraisal?

The term "excess land" in appraisal refers to land that exceeds the amount necessary for the highest and best use of a property. This means that the land has additional space that is not required to serve the current or planned use of the property. For instance, a commercial building may be situated on a parcel of land that has a portion not utilized for the building's operation. This extra land may not contribute to the property's value significantly in its current use but could hold potential for future development or sale.

Understanding this concept is crucial for appraisers as it helps them determine the proper valuation of a property and assess the potential for future development, which could enhance the property's overall marketability. In contrast, the other options do not accurately represent the implications of "excess land" within the context of appraisal.