Land Valuation Method
Currently (see land valuation), the value of the land line of a parcel is equal to 20% of the median residential property value in that pacel's neighborhood, divided by the median lot size in the neighborhood, times the lot size of the parcel. This results in a constant dollar per land square foot number in each neighborhood, with two exceptions:
- The total value of the land line is limited to a set portion of the total fair market value of the property. This ensures that you do not have properties where most of their value is in the land.
- Properties with very large land areas have lower land unit pricing.
Instead, we would like to develop a land valuation model that recovers location estimates from any preferred model and calculates land values for each property.