0
Q
What is allocation
A
Separating value between the component parts of the property
Sales $ x Ratio of land value to improvements
(land:property value)= land value
1
Q
What are the elements to land value
A
G ground rent L land residual A allocation D development/subdivision E extraction S sales
2
Q
What is extraction
A
Method used to derive land value:
Sales $ - Depreciated cost of improvements = land value
