What is the preferred method of valuing land when adequate value data is available?

The preferred method of valuing land when adequate value data is available is the Direct Sales Comparison Method. This approach involves comparing the subject property to recently sold comparable properties in the same or similar market conditions. The rationale behind this method is that the market is the best indicator of value, and analyzing sales data from similar properties allows assessors to draw reliable conclusions about the value of the land in question.

Using the Direct Sales Comparison Method provides a clear market perspective since it relies on actual transactions rather than estimates or theoretical calculations. It is particularly effective when there are sufficient sales of comparable properties, as it reflects the current market sentiment and offers insights into buyer behavior and property desirability.

The other methods, such as the Cost Approach and the Income Approach, are used in specific circumstances but may not provide as accurate a valuation for land when direct sales data is available. The Cost Approach considers the cost to create an equivalent property and may not reflect current market conditions, while the Income Approach focuses primarily on properties that generate income, making it less relevant for vacant land assessments. When adequate sales data is present, the Direct Sales Comparison Method is the most reliable and straightforward approach to determine land value.