Allocation Method

The typical ratio of site value to the total value of improved properties provides a value indication via allocation.  Thus, if the typical ratio of home sites to constructed homes is 20%, based on market research, then via allocation we would expect that a $ 500,000 home has a site value of about $ 500,000 X 0.20 = $ 100,000.

Allocation is usually not used on its own as the sole indication of value.  The method does, however, bolster the results found via the sales comparison approach when data quality is fair to poor.    

Contact us with your questions or concerns regarding the allocation method or regarding your appraisal assignment in Nevada via e-mail at grigdon@cox.net or by phone at 1-702-568-6699. 

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.