What is the method used to value individual parcels after a large tract of land is split for development?

The method used to value individual parcels after a large tract of land is split for development is subdivision development. This method involves assessing the entire tract of land as a whole and then applying a systematic approach to estimate the value of each subdivided parcel based on its attributes and the context of the overall development.

When a large piece of land is divided into smaller lots, it typically requires consideration of both the costs incurred in the development process and the market values of similar parcels in the area. Subdivision development takes into account factors such as location, zoning, accessibility, and market demand for the subdivided lots, ensuring that the valuation reflects not just the raw land cost but also its potential as developed lots.

Other methods like allocation or sales comparison may focus more on existing comparable sales data or various appraisal techniques, but they do not specifically address the valuation process following subdivision. Allocation might refer to dividing the overall value among the parcels in a more simplistic or statistical manner, while the sales comparison approach relies on comparing sales of similar properties without the unique considerations of newly subdivided lots. Thus, subdivision development is the most appropriate and nuanced method for this specific scenario.