Property Valuation
A Minnesota appraiser conducting a cost approach analysis determines the land value by:
AAllocating a percentage of the total property value to land
BAnalyzing comparable vacant land sales in the area✓ Correct
CUsing the assessed land value from county tax records
DSubtracting the depreciated improvement value from the sale price
Explanation
In the cost approach, land value is estimated separately by analyzing sales of comparable vacant land parcels in the subject property's market area. This is the most reliable method for land valuation. While the other methods (allocation, extraction) are sometimes used when direct comparable land sales are unavailable, they are less reliable. Minnesota appraisers look for recent vacant land sales with similar characteristics.
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