How to Accurately Assess Land Values

In part three, we'll dig into how to accurately assess land values in detail. But for now, let's look at the broad stroke differences between the estimation methods used here. The bearish values rely on a method called the cost approach, or land residual method. This is where you take estimated cost it would take to replace a building, multiply that against depreciation based on the building's age and then subtract that from the total market value of the property. Larson two thousand 19 was co written with davis oliner and sheey, and uses the cost approach exclusively. Crucially, larson two and 19 explicitly and intentionally excludes all vacant land sales from the data set. Long story short