Valuation of Ranchette Amenities: Hedonic Price Approach

Abstract

A hedonic price model has been used to ascertain the relevant characteristics that lead to the sale of rural, traditionally ranched or agricultural land parcels of 2-40 acres as "ranchettes" in Arizona. One of the characteristics of a ranchette is given by remoteness variables obtained from adjacency to open spaces and neighbors. The environmental characteristics pertaining to scenic beauty are obtained from remotely sensed satellite data through a vegetation greenness index. It was found that the greenness measure is a significant variable influencing the price of ranchettes. It was also found that those purchasing ranchettes were influenced by adjacency of the ranchette to public lands or open spaces. However, the presence of neighbors did not have any significant influence on the price of the ranchettes.