A review of the literature on land and its value reveals seven sources of ambiguity: 1) a precise definition of the type of land under investigation is frequently absent, 2) the temporal, and 3) the spatial aspects of the land value attributes might be inconsistently specified, 4) the relevance of the valuation methods used is often overlooked, 5) the separate land value is a mere by-product of the total property value as a rule, and thus lacks proper focus, 6) the different agents involved in land markets are not always taken into account, and finally, 7) the explanations for the unpredictable aspects of land value are sporadic. This article explores each of these areas of ambiguity.
The meaning and the sources of value have been debated for centuries. Still, value gets confused when compared with price, cost and income (PCI); this inescapably increases errors in its approximation when applying different approaches. Based on a new perspective, the differences between value, PCI and estimation approaches are distinguished.
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