Final answer:
The allocation method is the procedure that uses a standard ratio of land value to property value for valuing land and is based on market averages or benchmarks for specific real estate categories and locations.
Step-by-step explanation:
The procedure used to value land based on the premise that there is a normal or typical ratio of land value to property value for specific categories of real estate in specific locations is d) Allocation. the allocation method assumes that the land value is a set proportion of the total property value, which can be allocated based on historical averages or benchmark ratios within a market or category of real estate.
This method is especially useful when there is a lack of specific land sale data but sufficient information on overall property values. For instance, when valuing a piece of farmland, the allocation method might assume that the land represents a certain percentage of the total farm's value, reflecting the ratio commonly observed in the surrounding market or for similar farming operations.