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The Importance of Accurate Land Appraisals When Selling Your Property

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Published
06/30/2023

Land appraisals are much more complex than a home's, and you want an appraiser with experience appraising land. 

A land appraisal is a significant step as you consider selling your property. The right one can help you find the right buyers.

Location

One of the most critical factors regarding property value is location. This can be determined through research or a physical inspection of the land.

Appraisers will usually compare the land to other recently sold lots to determine its value. They'll also look at its shape and topography to determine how much usable acreage it has.

The location also includes access to nearby amenities and transportation options. People are more likely to buy homes in an attractive neighborhood where they can walk to grocery stores, restaurants, and entertainment.

If you want to get a quick estimate of how much your home is worth so that you have an idea of what you’re in for, a company such as Legendary Real Estate Service is able to help with this. With a simple tool on the website, you can get the insight that you need asap.

Topography

A land appraiser will consider how a building site would look on the property and factor in how difficult it would be to bring utilities to the property. If it's easy to access, it will typically appraise higher than an isolated plot of land that requires a long drive.

Accessibility

While a plot of land may look like a barren stretch of dirt to the average homebuyer, an experienced land appraiser can see more than that. Things like proximity to essential establishments—such as schools, hospitals, and transport terminals—can influence a property's value.

An appraiser will also consider the demand for raw land in the area. If there is a lot of demand for commercial development, the appraisal will reflect that. Similarly, low demand can lower an appraisal. To know more, click here.

Historical Management Practices

A thorough appraisal of a property involves a physical inspection. But it also includes research on the property and its history and comparisons to other properties.

An appraiser will consider the raw number of acres in a property, but they'll also look at how many usable acres there are based on topography and zoning. They'll also consider the future potential of the land and compare it to similar properties that have sold recently.

Utility Hookups and Sewer Options

If a property has water and sewer lines available, it will appraise for a higher value than a raw parcel without these amenities. Bringing in utilities is costly and often requires hiring an architectural engineer to survey the land, pull the necessary permits, and trench new lines.

The cost of connecting to public water can vary by region, and contractors typically charge per linear foot for trenching services. Depending on topography, the distance from the nearest utility line also impacts project costs.

Zoning

Zoning laws dictate what structures can be built on a lot and at what density (from single-family homes to high-rise apartment buildings). They also limit noise concerns, home-based businesses, and parking availability.

Appraisers compare the property you want to sell to comparable sales in the area and adjust for differences like size and location. They then determine a final opinion of value. If you disagree with an appraisal, there are options to resolve the issue.

Environmental Hazards

Even if there's nothing visible on the property, environmental hazards can lower its value. Depending on state law, sellers may be required to disclose such issues.

An appraiser will look at historical management practices and determine if they've been positive or negative. They'll also evaluate the land's number of usable acres based on topography and zoning. Then, they'll compare it to other sales in the area to find its value. You could easily make a costly mistake when buying vacant land without a professional appraisal.

Amenities

Most environmental amenities are public or quasi-public local goods with no exact market price, making them more challenging to evaluate. However, they contribute to the quality of life for residents. For example, buyers are willing to pay a premium for a residential unit closer to a park or river.

As a result, these features set your property apart from comparable listings and increase its value. To take advantage of this, ensure your land appraisal includes the presence or absence of these amenities.

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