What method is used to value individual parcels of land after a large tract has been purchased and prepared for development?

The subdivision development method is the most appropriate choice for valuing individual parcels of land after a large tract has been purchased and prepared for development. This method involves breaking down a larger parcel into smaller, individual lots for sale.

When a developer acquires a large property, they typically plan for its subdivision into smaller lots that can be sold separately. This method takes into account market conditions, the cost of improvements made to the land (such as utilities and roads), and sales of similar lots in the area. The subdivision development method allows for the valuation of each parcel based on its potential use, surrounding market dynamics, and the demand for individual lots.

In contrast, the market comparison method relies on similar property sales to determine value, the cost approach method focuses on costs associated with construction or replacement, and the income approach method assesses the value based on potential income generated from the property. Each of these methods has specific applications that may not be suitable for individual parcel assessment in the unique context of a subdivided large tract.