The ratio of land value to building value is used when estimating site value by the

a. sales comparison method.
b. allocation method.
c. subdivision development method.
d. land residual method.

The ratio of land value to building value is used when estimating site value by the allocation method.

Explanation:

It is used for site and land valuation or appraisal.  Allocation method  is ideal when comparable are not given or known. When a new home is constructed on land area that has been recently bought or purchased, then Allocation method will be ideal . It is best suitable when given as percentage or proportion of the property’s total value that has been improved.

But when comparable improved sale is used , land or the building portion of the property should be determined first. For a newly built home , cost of improvements divided by the sales price of the home gives the percentage of improvements compared to purchase price of  comparable.This method is not ideal for older homes.  

To apply this method

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