How to Know Your Land Value vs Home Value

Question

Hi everyone, Can someone explain to me how you're supposed to know the exact value of your home vs the value of the land? As far as I know when tax time rolls around on the depreciation deduction, the land value isn't considered. I'm also wondering how you find this out for a cash out refinance in the future. Where can you see the exact value if it appreciates? Thanks!

Daniel Sabato · Answer

@Brenden Mitchum Big help thank you! I was more just curious come tax time how they decide the land value vs the home value? Which is why I’ll be going to a professional this year so we can get it done properly & I can learn!

Basit Siddiqi · Answer

@Daniel SabatoThe IRS/tax courts have deemed 6 different methods to calculate value between building and land.

Andrew Cichon · Answer

All the county tax appraisal websites I have been to have a land value in them, I used that for my tax returns as my source of land evaluation. :)

Steve Morris · Answer

Well, you could do a comp sales on raw land with the level of development your lot has.

Otherwise, the usual/customary is 80/20 = Improvements/Land

Brenden Mitchum · Answer

Hey @Daniel Sabato

There is no "exact value" for any home. This is why we do sales comps and appraisals. When you go to refinance, an appraiser will decide what your home is worth and this will be added to the land value. You can find the land value on your county's tax assessor site. You should also see what they have your property's total value set at for tax purposes.

I don't want to dive anymore into depreciation and other tax stuff since this is not my area of expertise but I hope this helps!

If you have other questions or just want to chat, feel free to reach out to me anytime!

How to Know Your Land Value vs Home Value

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