What is land value in SAP RE - Real Estate Management?

SAP Term: land value

• Component: RE

• Component Name: Real Estate Management

• Description: The value of an undeveloped property land or the value of the land on which a building is constructed. This value is determined from the sales revenue of comparable land. If there are not enough comparable sales, the community can also use the land reference value as a basis.

Smart SAP Assistant

• Key Concepts: 
  Land value is a term used in SAP Real Estate Management (RE-FX) to refer to the value of a piece of land. It is calculated based on the market value of the land, taking into account factors such as location, size, and zoning. The land value is used to determine the total cost of a real estate transaction. 
  
  How to use it: 
  In SAP RE-FX, land value can be used to calculate the total cost of a real estate transaction. This includes the purchase price of the land, as well as any additional costs associated with the transaction such as taxes, fees, and closing costs. The land value can also be used to determine the amount of capital that needs to be invested in order to purchase a piece of land. 
  
  Tips & Tricks: 
  When calculating the land value for a real estate transaction, it is important to take into account all relevant factors such as location, size, zoning, and any additional costs associated with the transaction. Additionally, it is important to consider any potential future changes in market values that could affect the total cost of the transaction. 
  
  Related Information: 
  For more information on SAP RE-FX and land value calculations, please refer to SAP's official documentation on Real Estate Management (RE-FX). Additionally, there are many online resources available that provide detailed information on how to calculate land values for real estate transactions.