What valuation method is used when there is little comparable sales data and large parcels of land are involved?

The abstraction method is particularly effective in scenarios where there is limited comparable sales data, especially with large parcels of land. This approach centers on breaking down a property into its component parts, analyzing each segment's value, and then synthesizing this information to estimate the property's overall value. It is beneficial when traditional appraisal methods, like sales comparison, may not provide enough relevant data due to the unique characteristics or size of the property.

For large parcels of land, sales data might be scarce or less reliable due to distinct differences in land use, zoning, or location. The abstraction method allows appraisers to factor in elements such as the potential for future development, use of utilities, and other attributes that can influence value, which wouldn't necessarily be captured in a straightforward sales comparison approach. This method provides a more tailored and potentially accurate valuation than others in situations with limited market data.