Which land valuation method is useful when there is limited comparable sales data and large parcels of land are involved?

The Abstraction Method is particularly useful when dealing with limited comparable sales data and large parcels of land because it allows for the estimation of land value based on a combination of the cost to develop the land and the income potential of any improvements that may be made. This method is advantageous in scenarios where traditional market comparisons are not viable due to a lack of recent sales data or when the properties in question are unique, large, or have special uses that make typical market analysis ineffective.

In contrast, the Cost Approach is generally used when properties are relatively new or for specialized property types where replacement costs are easier to estimate, but it may not adequately account for the nuances of larger parcels without comparable sales. The Income Approach typically applies to income-generating properties, making it less suitable for vacant land or large parcels without clear revenue potential. The Market Method is effective when there is an abundance of sales data; thus, it falls short when such data is limited.

Therefore, the Abstraction Method stands out in these situations as it leverages both development costs and potential earnings, making it appropriate when traditional methods cannot be applied effectively. This approach aligns well with scenarios where direct market comparisons are unavailable, especially for large parcels.