NYS Appraisal chptr 6 site valuation
Terms
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- Purpose of H&B Use
- 3) Helps Identify Comp Properties for sales comparison.
- To Qualify for H&B Use....
- the use must result in the highest value.
- Maximum Productive Use...
- The use that results in the highest value.
- Principle of Anticipation...
- value of property is affected by potential futire benifits
- Interim Use
- when current H&B use is expected to change - the use that is current. (ie., land being used as a farm that is being changed to residential).
- Vacant & Improved Land
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H&B use may vary, depending if land is vacant or improved.
note - must make a distinction of highest & best vacant or improved - Legal - Non Conforming
- when zoning laws are changed to become more restrictive, existing use may become non-confirming.
- Legally Non Conforming
- when zoning laws allow the continued use.
- Excess Land
- is land that is not needed for H&B use
- Plottage
- the increase in value that occurs from combining two or more lots
- Sales Comparison
- is the most reliable & most often used method of valuing land
- Extraction
- is preferred over allocation
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Six Methods to VALUE LAND
Method one - SALES COMPARISON -
Sales Comparison - most important & reliable - value of land is indicated by like sales.
A) Sales of improved property
B) Location - comps s/b located in same NH -
Six Methods to VALUE LAND
Method two - ALLOCATION -
is a method of estimating land value for improved properties.
salys that a certain % of prop is for the building & whats left is land. 2 setbacks are that you need market data. -
Six Methods to VALUE LAND
Method three - Extraction -
the depreciation costs of improvements is subtracted from the total value of the property to arrive at value of land.
Can only be used when 1) value of comp improvements are reliable and 2) value of improvements is small in relation to total value. -
Six Methods to VALUE LAND
Method four - Development Method - applied to vacant land when h&b use cannot be determined.
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Six Methods to VALUE LAND
Method five - Land Residual Method - O form of income capitilization approach to value. I=RXV
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Six Methods to VALUE LAND
Method 6 - Ground Rent Capitilization -
Another means of applying the income approach.
GROUND LEASE - the tenant leases the land from the landlord and constructs a building, lease is usually long term. The rent paid on a ground lease is ground rent.
DEPTH TABLE - A % table that illustrates the H&B Value is located in the front part of the lot. They give a ballpark idea of Value