What does building residual method mean?

building residual method meaning in Law Dictionary

n appraisal technique whereby income to land is subtracted from web running income to bring about the building earnings. Building income is capitalized into building price. Contrast land residual strategy.

building residual method meaning in Business Dictionary

real-estate appraisal method by which a reasonable amount is deducted from a property's net gain since the estimated earnings from the raw land alone. The balance is caused by the improvements towards the land and/or on building looking at it (if any).