Which method is typically best for valuing raw, vacant land intended for subdivision development?

The subdivision method is considered the most appropriate choice for valuing raw, vacant land intended for subdivision development due to its focus on the specific characteristics and potential development of the land. This method assesses the value of the property based on the expected financial return from developing it into subdivided lots.

In using the subdivision method, the appraiser typically estimates the potential income that can be generated from selling the subdivided lots. Factors considered may include the estimated sales prices of these lots, the costs associated with development (like infrastructure and improvements), and the timeframe for selling the lots. By calculating the net present value of the expected cash flows, this method provides a clear framework for determining the land's potential value in the context of its intended use.

Other methods like the comparative market analysis, cost approach, and income approach may not adequately capture the unique aspects of land designated for subdivision. For example, the comparative market analysis focuses on sales of similar properties, which may not be relevant for raw land without existing comparable sales. The cost approach estimates value based on the cost of replacing or reproducing the property, while the income approach works best for income-generating properties rather than raw land, where there is no immediate cash flow to account for. Therefore, the subdivision method effectively