What is a home site and how is it valued?
A “Home Site” or “House Site” is all or part of a parcel that is best suited for single family residential construction. Applying the concept of “highest and best use”, this part of the land parcel is worth significantly more than the residual acreage. For example: a three acre parcel can be shown with the 1st acre valued at $35,000 and the remaining two acres at $5,000 an acre for a total land value of $45,000; or a half acre parcel would be valued at $35,000 for a total land value of $35,000. Top of Page Why is my three acre tract valued at a higher rate per acre than my neighbor who has fifty acres?* A straight mathematical calculation would produce the following: $45,000 ÷ 3 acres = $15,000 per acre $280,000 ÷ 50 acres = $5,600 per acre. An actual breakdown of a three acre parcel would show a unit value on the first acre (house site) of $35,000 and the remaining two acres assessed at $5,000 per acre. A 50 acre parcel would show a unit value on the first acre (house site) of $35,000
