The abstraction method is a technique used to estimate the land value by subtracting the depreciated value of the improvements from the total market price of the property.
Appraisal by Summation, also known as the Cost Approach, is a real estate valuation method that determines the value of a property by adding the land value to the depreciated value of any improvements (such as buildings) made on it.
Assemblage is the process of combining two or more adjoining parcels of land to create a larger, more valuable piece of property. The new, larger tract may have a higher collective value due to its potential for enhanced usability or development.
In real estate appraisal, the Principle of Balance asserts that there is an optimal mix of inputs that, when combined with land, will result in the highest land value. Key inputs include labor, capital, and entrepreneurship.
Depletion refers to a non-cash deduction that accounts for the reduction in value of an income-generating natural resource, such as minerals, oil, gas, or timber.
`Depth Tables` are a set of percentages indicating the proportion of site value attributable to each additional amount of depth in the lot. These tables help in understanding and appraising land value, especially when the depth of the lot exceeds standard dimensions.
The floor-area ratio (FAR) measures the relationship between the total square footage of a building and the square footage of the land area on which it is built. FAR is regulated by zoning codes and can significantly impact land value and development potential.
In real estate, a holdout is a landowner in the path of an assemblage who seeks the highest possible price by refusing to sell in the early stages of the process. This often involves strategic negotiation to maximize land value, especially during large-scale property development projects.
The Improvement Ratio measures the relative value of improvements on a property compared to its unimproved value, providing insight into the investment in enhancements versus the land value itself.
Land economics is a branch of economics that studies the allocation, use, and value of land. This field aims to understand how land resources are utilized, valued, and managed, with a special focus on agriculture and urban development. It integrates knowledge from geography, environmental studies, and economic theory to analyze land-related issues.
The Lincoln Institute of Land Policy is a nonprofit educational organization committed to the research and discussion of land policy and property tax issues on a global scale.
The one-hundred-percent location refers to the specific spot in an urban area where land values and rents are the highest, often considered the 'best' or most prime location.
Plottage refers to the increase in value realized by combining multiple smaller parcels of land into a single, larger parcel. This process is often employed in real estate to optimize land use and maximize profit.
