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By allocating the total sales price between <br /> land and buildings, an estimate of land value can be <br /> abstracted from sales of improved properties by subtracting the <br /> cost of the improvements. What remains is land value. <br /> This approach may be useful at times when few or no vacant <br /> land sales exist; however, caution must be emphasized since <br /> ratios may be influenced by factors such as size, shape <br /> contour, etc. <br /> ANTICIPATED USE OR DEVELOPMENTAL VALUE <br /> This procedure involves the comparison of an undeveloped <br /> parcel of land to be appraised, with a developed parcel for <br /> which sale prices of individual lots are known. The <br /> appraiser must first, by comparison, project the gross sale <br /> for all probable lots, were the subject parcel developed. <br /> From this he then deducts all development costs and an <br /> adequate profit allowance for the developer. The value <br /> remaining represents the price at which the parcel could <br /> reasonably be expected to be sold for development. <br /> THE LAND RESIDUAL TECHNIQUE <br /> In this approach the net income of the site improved to its <br /> highest and best use is estimated. From this net income is <br /> deducted a fair interest return and recaptured provision for <br /> the estimated cost of the improvements. The residual net <br /> income is ascribed to the land and an indicated value for <br /> the land is achieved by capitalization. <br /> B. LAND COMPARISON <br /> Intelligent buyers compare prices as well as the advantages <br /> and disadvantages of other available building sites. It is <br /> understandable then that lots of equal desirability and <br /> advantages in a district tend to seek a common level of <br /> value. <br />