Building vs. Land Costs

2 Replies

Hi, I'm a newbie so I'll qualify my question a bit by saying it might be a stupid question, but in the post where a property analysis worksheet was provided, the building and the land costs were separated out. How is this split determined? It's in the upper right portion of the sheet in green boxes. Thanks.

Not a stupid question at all. My input would be that we estimate that land on residential property is generally around 20% of the total property value as a rule of thumb.

Here in TX, our local county appraisal districts break out land versus improvement values in the appraised values that they use to assess property taxes. This information is publicly available online as well. Maybe this is something you could look into for properties there in LA as well. 

Thanks, Jordan. I was a little surprised to see the breakdown in that spreadsheet because here it's not uncommon to see tear-down's sell for $125 (land value) but some houses sell for only about $200K (not tear-downs), so the land value here would seem to be a little higher % if that makes sense, but you're right, it should be publicly available. Thanks again, Jordan.