Which of the following is considered the least useful method of valuing land?

The allocation method is considered the least useful method of valuing land primarily because it typically relies on allocating total property value to the land and improvements based on a historical or preset percentage. This method does not take into account the specific characteristics of the land, the current market conditions, or the unique aspects of the property that could influence its value.

In contrast, the sale comparison method is highly regarded as an effective way to value land, as it compares the subject property to similar properties that have recently sold in the area, reflecting the current market trends and buyer preferences. This method provides a direct indication of value based on actual transactions.

The ground rent capitalization method focuses on determining the present value of the income stream generated by the land, which can be particularly effective in markets where land is leased. This income-based approach can yield accurate valuations in appropriate contexts.

The land residual method estimates the land value by assessing the income produced by the property after accounting for the expenses related to the improvements. This approach is useful when dealing with income-producing properties, making it an effective method for land valuation in many cases.

Overall, the allocation method's reliance on historical data and predefined ratios limits its adaptability and responsiveness to changing market conditions, making it less useful compared to the more active