What aspect of a property's appraisal value is determined through the land residual technique?

The land residual technique is a method used in property appraisal to determine the value of both the land and the building or structure that occupies it. This technique is particularly useful in situations where the land's value and the value of the improvements (like buildings) are interrelated.

The approach essentially involves estimating the total income generated by a property, subtracting the operational expenses associated with the building, and then using that information to derive the land value. The residual is the value attributable to the land after the building's functional contributions and expenses have been accounted for.

By applying this technique, appraisers can arrive at a comprehensive understanding of the overall value of the property, taking into consideration both the intrinsic value of the land itself as well as the added value from any structures on it. This method reflects how real estate often represents a blend of land and improvements, rather than considering them in isolation. Thus, the correct answer encompasses both the land and building values, which are critical components in the total appraisal value of the property.