How is a conservation easement valued?
An independent appraiser selected by the landowner sets the value of a conservation easement by determining the difference in value of the land without the conservation easement (when the full development potential existed) and the value of the land after it is encumbered by the conservation easement (when substantially all of the development potential has been removed except for limited building sites). Known as the “before and after” approach, the value of the conservation easement is the difference between the land value before the conservation easement is placed on the land (when it could be subdivided into “ranchettes”) and the value of the land after it is encumbered by the conservation easement. For example, a 1,000-acre hill country ranch might be worth $3,500/acre. Some of the value reflects the value of the development rights (in other words, the potential to subdivide the land for residential development), after a conservation easement is placed on the land allowing only fou
Related Questions
- Can a private landowner donate a conservation easement to convey away the propertys development rights but still continue to use the property as before the easement was granted?
- How is the value of the agricultural land conservation easement determined, and by whom?
- How is a conservation easement valued?
