The land residual technique is a valuation method used to estimate the value of land by determining the residual income that can be generated by a property after accounting for the costs associated with improvements. This approach separates the value of the land from the value of any structures on it, allowing for a clearer analysis of the land's contribution to overall property value. It is particularly useful in assessing properties where improvements are expected to generate rental income or where development potential is a significant factor.
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