Immobility
The defining physical characteristic of land: it cannot be moved. Immobility is why location dominates value, why real estate markets are local, and why identical houses in different places sell for different prices.
Related Terms
Location Analysis
The evaluation of a property's position relative to surrounding land uses, transportation, employment centers, schools, amenities, and negative influences.
Market Area
The geographic area within which properties compete for the same buyers.
Site
Land that has been prepared for use — graded, with access and utilities available.
More in Land & Site Valuation
View allAllocation Method
A land valuation technique that estimates land value by applying the typical ratio of land value to total property value observed in the market.
Extraction Method
A land valuation technique that estimates land value by subtracting the depreciated cost of improvements from the total sale price of an improved property.
Land Residual Technique
A land valuation method that estimates land value by capitalizing the net income remaining after deducting the return attributable to the improvements from the property's total net operating income..
Ground Rent Capitalization
A land valuation method that estimates land value by capitalizing the ground rent (the rent paid for the use of land only, without improvements) at an appropriate capitalization rate..