Appraisers encounter many situations in which the value of land must be estimated, and some of these situations can present complex challenges, according to a book published by the Appraisal Institute, AI announced in a release.

“Land Valuation: Real Solutions to Complex Issues" reviews basic land valuation techniques (extraction, allocation, land residual, and ground rent capitalization) and presents advanced and non-traditional methods to help appraisers solve complex land valuation problems.

After first reviewing the importance of market analysis and the traditional ways of valuing land, this book explores more advanced techniques for valuing the fee simple and leased fee interests in land. The discussion of these topics is supplemented with seven complete case studies and accompanying spreadsheets.

Learn how to value land, or a leased fee interest in land, when: 

• The highest and best use is uncertain or not currently feasible.
• The land is subject to a long-term ground lease.
• Developers want to know how much they can pay for land.
• Traditional units of comparison are not relevant.
• The land is contaminated.
• Buyers make land purchase decisions based on cost.

"This book focuses primarily on urban and suburban land suitable for commercial development, including multiunit housing and residential subdivisions. Real estate appraisers and consultants, real estate agents, landowners, land use planners, developers and investors can all benefit from the information presented,” Appraisal Institute President Jody Bishop wrote in the book’s foreword.