How to Determine a Land’s Market Value
Finding the “market value” of any vacant land is one of the main challenges that any property investor faces. The sale of land is no different; land sales often rise when there is a sense of unpredictability. Land offers the ideal blank slate for those who are searching for ways to have more control over their lives. Kansas City real estate market trends are providing inexpensive real estate, high cash flow, and excellent investment options despite these uncertainties.
If you don’t know how to estimate the value of your land, selling it might be a difficult undertaking, especially if you want to sell it quickly. This article will show you how to estimate the value of a piece of property without having to put in a lot of effort.
- Engage an appraiser
Locate a certified appraiser who has expertise in valuing vacant land in your region. Do not forget that valuing a house differs greatly from valuing a piece of land. You may use their license number to check if they have a license by contacting the state’s department of real estate to see if the license is still in effect.
Before you enter into any agreements, request a quote. You don’t want to spend more money than your land is worth on a land appraisal, which may often be more expensive than a home evaluation.
Collect supporting documentation, such as your property’s plot survey or plan, and a title report that you may get from a title search provider. To obtain the legal description of the property, get in touch with your local office of the Country Recorder of Deeds. Then, get in touch with the County Assessor’s office to request the most current tax statement for the property.
Keep in mind that some municipal governments may run identical departments under various titles. Some may even demand payment in cash and charge a little fee to provide paperwork for you.
- Identify your land’s hidden value
The value of a property might occasionally be a little more difficult to determine. On paper, the property’s location and potential uses may not seem to have much worth, but what is growing there has a lot of value.
Watch out for any potential benefit that wood harvesting may produce. If a property is located in a heavily forested region, an extra investigation may be warranted. You may learn how much the timber on a piece of property is worth with the assistance of a qualified forestry expert.
- Make an estimate using local sales
You can estimate land’s worth without engaging with a third party, yet an appraiser can help you come closer to a reasonable estimate. It is totally feasible to complete this task on your own, but it will require some fundamental research skills and the ability to synthesize the material you collect.
Locate details on recent local land sales that took place during the last six to twelve months through property search websites. Keep your search inside a one-mile radius of your own home if your house is in an urban or heavily populated region. You can extend your search to an eight mile radius if the property is in a rural location. The objective is to find out how much these similar houses sold for. Before estimating the value of the land for your own property, consider any significant variations that might alter the price.
- Find comparable properties
As a starting point, search for any residences that have comparable accessibility to your own. The distance between the property and facilities like supermarkets, libraries, schools, and other characteristics that purchasers seek when determining where to start up a shop should be considered.
The next step is to search for properties that are comparable to your own in terms of size, form, and geography. This implies that in addition to acreage, you also need to take other aspects into account, such as your land’s suitability for farming, the number of suitable construction sites, and others.
Finally, search for houses that are near water sources that are similar to your own. Whether they are creating residential or commercial buildings, this is sometimes a difficult subject for aspiring builders. How easily will they be able to access it and how close the nearest water source is.
- Consult real estate agents
One alternative is to speak with a real estate agent. To sell undeveloped or vacant land, you must select a real estate agent with experience, much like when you hire an appraiser. Instead of choosing the first option you come across, do some research and talk to a second or third.
Be sure to ask questions such as, “how can I determine my land value?” or “how much would I get for my land if I sold it in a year?” Brokers in real estate can respond to these inquiries with ease. Unless you consent to allow the agent to sell your property on your behalf, they are not legally binding.
The agent must physically visit your property in order to give you an accurate estimate. You can cooperate with them to help you sell the land if you come to trust them and value their advice. They will, however, retain a portion of your sale price.
The best you can do is conduct a respectable amount of research when estimating the value of land. Look up any available information using tools like PropStream or DataTree, browse Zillow’s area listings, and make the best decision. In the end, you should be able to shield yourself from the majority of land investment risks if you are making low enough bids.