Property Valuation
The 'land residual technique' in appraisal is used primarily to:
ACalculate the value of vacant land by residual income
BAllocate total property income between land and improvements to estimate land value✓ Correct
CDetermine the highest and best use of a subdivided parcel
DCalculate the per-unit value of a condominium development
Explanation
The land residual technique attributes a portion of a property's income to the improvements (using a return on and of improvements), and the remaining (residual) income is attributed to the land. Capitalizing the land's residual income provides an indication of land value.
Related Alaska Property Valuation Questions
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