Tricks of the CAMA Masters III

This article extends the series by documenting a 12th trick used for decomposing a total market value estimation model (the parent model derived from improved property sales) into two separate but additive submodels (a land model and a building model). The land value estimate (from the land submodel...

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Bibliographic Details
Published inJournal of property tax assessment & administration Vol. 13; no. 2; p. 51
Main Author Jensen, David L
Format Journal Article
LanguageEnglish
Published Kansas City International Association of Assessing Officers 01.04.2016
Subjects
Estimates
Jurisdiction
Mobile homes
Neighborhoods
Property taxes
Property values
Regression analysis
Residential buildings
Sales
State court decisions
Studies
Tax assessments
Valuation
United States > US
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Summary:This article extends the series by documenting a 12th trick used for decomposing a total market value estimation model (the parent model derived from improved property sales) into two separate but additive submodels (a land model and a building model). The land value estimate (from the land submodel) and the building value estimate (from the building submodel) add to the total market value estimate (from the parent model) on a per parcel basis while concurrently guaranteeing that two identical lots will have identical land values even when their improvements (residences and attached and detached structures) have widely differing values that result in widely differing total property values. The article begins with a discussion of land-only models that are derived from land-only sales and why they are usually inappropriate for valuing the land portion of improved residential lots. The methodology presented in this article has been applied successfully to residential properties in a number of widely varying jurisdictions throughout the US as well as in a few international jurisdictions.
ISSN:1357-1419
1548-3606