Property Valuation
In Texas, the 'allocation method' for estimating land value uses:
AThe county's assessed value for the land portion
BA typical land-to-property value ratio derived from improved comparable sales to estimate the land value of the subject✓ Correct
CThe cost to develop the land
DA government formula for all properties in a zone
Explanation
The allocation method estimates land value by applying a typical land-to-total value ratio derived from analysis of improved comparable sales. For example, if comparables show land is typically 20% of total property value, the subject's land value equals 20% of the total property value. This method is used when direct land sales are unavailable.
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