The appraisal of vacant land is typically described as a simple task, but this is a common misconception. The reality is there are several measures to be taken by an appraiser in order to provide you with an accurate land development valuation. Once you’ve decided to sell your land, you should familiarize yourself with how land appraisals work. To sell your property at the correct market value, you’ll need to enlist the services of an expert land appraiser from Lexington Appraisals.
Your appraiser will assess local market values and take every aspect of your land into account, adding each detail into the evaluation. He or she will review recent sales of comparable properties and combine this information with your land to offer a fair estimate of your property’s worth. Your appraiser will also look at your land’s potential and determine what could be done with it in the future, as specific property types are appealing to investors and will often sell for higher revenues. Investors may wish to develop property on your land, open a business, or use it for agricultural purposes. Land with the potential to turn these ideas into reality will be worth significantly more. This detailed analysis is the primary reason it is more difficult for an appraiser to value land than a structural home or business facility.
The final estimated value will be the amount a prospective buyer would be asked to pay during an unforced sale of your property.
At the beginning of the appraisal process, your appraiser will assess comparable properties of similar size and style that have sold in the local area in the recent months. This will help to estimate how much your land could potentially sell for. For example, if a local property sold for $175,000, and appears to have similar attributes to your land, you stand a good chance of achieving a similar sales price for your property.
Location is another factor that can have a significant effect on the value of your land. Properties in varying locations may sell for vastly different prices, despite being similar in size, shape, or type. Land with attractive features such as a lake or picturesque views will always prove to be more expensive, as will land in proximity to the convenience and social connections of towns and cities. Land in more rural areas with little business development will often lose value, as prices in these regions are not usually at a premium.
Additionally, properties with good earning potential can yield higher revenues. For example, if your land is agricultural or features an orchard, your land will be worth more, due to the fact it can make the investor an additional income.
The usage of your lot will have little effect on the result of the land appraisal, whether it’s zoned as residential, business, or agricultural. A skilled appraiser from Lexington Appraisals will take this into account and use it to your advantage, marketing it in a manner that will entice customers looking for a lot of a similar kind.
All vacant land appraisals or land development valuations from Lexington Appraisal will be completed in agreement of the USPAP and Appraisal Guidelines for Federal Land Acquisition. Let us help you market your land, knowing it’s on the market at the correct price. Contact us today for a detailed quote.