Example: 5000 SF of land sold for $1,000,000 and the assessed improvement ratio (supplied by the assessment office) is 80%. Take the inverse of the Improvement ratio to generate a land ratio of 20 percent. Calculate the value of the land when using the land ratio against the sales price. ($1,000,000 X 20%=$200,000) That value is then divided by the land area to come up with a Net $/SF for land. (e.g., $200,000/5000 = $40 Price per SF Net).
