What is the main goal of using the subdivision method in property appraisal?

The subdivision method in property appraisal focuses on establishing value based on optimal land use. This approach involves analyzing a piece of land as if it were to be subdivided into smaller parcels, allowing for the evaluation of each parcel's potential use and value. By considering the best possible use of the land, which might involve creating residential lots, commercial spaces, or other developments, appraisers can arrive at a value that reflects what the land would be worth once it has been fully developed.

This method is particularly useful in areas where the highest-value use can be achieved through development, as it takes into account zoning laws, market demand, and the possibilities for the land's development. Consequently, the subdivision method provides a comprehensive understanding of the value that can be realized from the land based on its most efficient or productive use, making it a crucial tool for appraisers in determining property worth in a real estate context.