2 ms·
Good point. As a technical matter. Once a property is built on, how do you distinguish between land value and the building value-add without some arbitrary va
by adrianratnapala 10y ago
Good point.
As a technical matter. Once a property is built on, how do you distinguish between land value and the building value-add without some arbitrary valuation?
- smallnamespace 10y agoHopefully there are still unoccupied lots that are comparable. Otherwise it's pretty much whatever number the tax man decides. Note that in many jurisdictions property tax values are only assessed periodically.
- clairity 10y agomy opinion is that valuation is always subjective, but there's a whole industry and a whole field of economics dedicated to answering that question. conceptually, land value is just market price of the property minus building cost. building cost is a little more objective to estimate than market price but it's not an exact science either (i formerly product managed the cost estimator used by most US taxing jurisdictions and many international ones).