The Determination of Capitalization Rate by the Remote Segments Approach: The Case of an Agricultural Land Appraisal

• Published in: Agriculture (Basel) Vol. 14; no. 10; p. 1709
• Main Authors: Cucuzza, Giuseppe, Cerro, Marika, Giuffrida, Laura
• Format: Journal Article
• Language: English
• Published: Basel MDPI AG 01.10.2024
• Subjects: Agricultural industry; Agricultural land; Appraisers; Comparative analysis; Estimation; fruit orchard; Fruits; general appraisal system; income approach; Land appraisals; Market segments; Market value; Orchards; Real estate; Real property; remote segments approach; Segments; Tree crops; Valuation
• ISSN: 2077-0472; 2077-0472
• DOI: 10.3390/agriculture14101709

In the absence of comparative real estate data in the market segment of the property to be estimated, the appraiser may resort to income capitalization to estimate the market value. Often, however, the choice of which rate to apply is affected by subjective and arbitrary assessments. The estimation...