Which technique is used when there are no unimproved land sales available for supporting land value?

The Land Residual Technique is particularly useful in scenarios where unimproved land sales are absent or insufficient for determining land value. This approach estimates land value by analyzing the income generated from the property, deducting the cost of improvements, and attributing the remaining income to the land itself. Essentially, it hinges on the idea that the value of the land can be inferred from its capacity to produce income in relation to the invested development costs.

This technique becomes vital when market data for comparable unimproved land transactions is lacking, as it enables assessors to rely on the economic performance of the property rather than historical sales data. In situations where no actual sales occur, understanding the income potential and subtracting the value of any improvements allows for a more accurate estimation of the land's worth.

The other methods mentioned, such as the Sales Comparison Approach and Cost Approach, typically rely on data from either comparable sales or construction costs, making them less applicable when unimproved land sales data is not available. While the Income Capitalization Approach focuses on property income as well, it does not specifically isolate the land component in the same detailed manner as the Land Residual Technique.