Overall real estate values, including land values, declined significantly throughout the state. Some real estate advisors now caution against buying land unless you plan to build on it within six months. Another real estate maxim is that land does not depreciate. Technically, this is true. Land can decrease in value, but it s not called depreciation.
Improvements depreciate, but land loses value.
In rural areas where vacant land sales are common, the adjusted sales comparison approach is a simple way to estimate land value. This is also the most widely-used method for appraising improved residential property. The first step in this approach is to select three or more land sales which most closely resemble the property being evaluated. Comparable sales are difficult to find. Private real estate information services such as Experian, Metroscan and Dataquick focus their efforts on urban areas and don t serve rural counties very well.