Site Value
The market value of the land as if vacant and available for development to its highest and best use. Site value is a component of the cost approach and is estimated separately from improvement value.
Site value is estimated using techniques such as comparable land sales, allocation (percentage of total value attributable to land), extraction (total sale price minus estimated improvement value), and land residual analysis. Site value considers factors including size, shape, topography, zoning, utility availability, access, and environmental conditions. In the cost approach, site value is added to the depreciated cost of improvements to arrive at the indicated value. Site value does not depreciate — only improvements depreciate.
Related Terms
Land Value
The market value of a parcel of land as if vacant and available for development to its highest and best use.
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.
Highest and Best Use
HBUThe reasonably probable use of a property that results in the highest value, considering uses that are legally permissible, physically possible, financially feasible, and maximally productive..
Allocation 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.
More in Property Characteristics
View allGross Living Area (GLA)
GLAThe total finished, above-grade living area of a residential property, measured in square feet.
Gross Building Area (GBA)
GBAThe total area of a building measured from the exterior walls, including all finished and unfinished, above-grade and below-grade spaces.
Below-Grade Area
Any portion of a building that is below the ground level on any side.
ANSI Z765 Measurement Standards
ANSIThe American National Standards Institute standard for measuring residential floor area.