What is a common method for estimating the value of land?

Appraising by comparison is a widely accepted method for estimating the value of land, particularly in real estate practices. This approach involves analyzing the sale prices of similar properties that have recently sold in the same area, also known as comparable sales or "comps." By examining the characteristics of these comparable properties—such as size, location, zoning, and other relevant features—appraisers can derive a value for the land in question that reflects current market conditions.

This comparative approach is effective because it aligns the land being appraised with real-world transactions, ensuring that the value estimate is grounded in the realities of what buyers are currently willing to pay. It helps create a market-driven perspective on land value, which is essential in real estate evaluations.

The other methods listed—such as appraisal by income, estimating based on replacement costs, and employing government assessments—serve different purposes and are not as commonly suited for land valuation on their own. Appraisal by income typically pertains to income-producing properties rather than vacant land. Estimating based on replacement costs involves evaluating how much it would cost to recreate a property, which might not effectively translate to land value. Government assessments, while useful for a variety of purposes, may not always reflect true market value due to differing criteria and