All sale transactions are processed through the local assessment offices as deeds are recorded. Each property's sale price is compared to its assessment. The Department reduces assessments if a downward trend occurs. My insurance company just appraised my house. An appraisal made for fire insurance purposes does not include the land.
Land is valued based on the market or comparative sales approach and the allocation approach.
Sale properties are analyzed and compared. Units of comparison such as square feet, acreage and front foot are used to develop land value from the sale properties. These land values are then applied to non-sale properties based on their comparability. When valuing building lots, small building lot size does not usually indicate a significant difference in the lot value. Factors such as location and topography can affect the land value.