Property Valuation

In Alaska, a 'development approach' (also called 'developer's profit' analysis) to land valuation is used primarily when:

AValuing agricultural land in the Matanuska-Susitna Valley
BNo comparable vacant land sales exist and land must be valued through its development potential✓ Correct
CThe appraiser needs a quick estimate of land value
DThe property is located in an unorganized borough

Explanation

The development approach (similar to subdivision analysis) is used when comparable vacant land sales are unavailable. It analyzes the land's development potential by projecting the revenue from developed lots/units, deducting all development costs and profit, and discounting to present value to estimate current land value.

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