Site Improvements
Improvements to the land itself rather than buildings — grading, driveways, walkways, landscaping, fencing, septic and well systems. In the cost approach they are estimated separately from structures.
Related Terms
Site
Land that has been prepared for use — graded, with access and utilities available.
Improvement
Any structure or development permanently attached to land — buildings, garages, pools, paving, utilities.
Cost Approach
A valuation method that estimates value by calculating the cost to reproduce or replace the improvements, subtracting accrued depreciation, and adding the land value.
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..