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What You Need to Know About Land Appraisals

Land appraisals are a valuable process for anyone considering investing in a piece of land. Whether you’re looking for raw land that could be developed into a future home or a farmland with optimal soil quality, a land appraisal can help you determine its value and potential use.
What You Need to Know About Land Appraisals

One of the first things that appraisers consider when evaluating a parcel of land is the zoning. The zoning of a property can limit how it’s used and what type of development is possible. It can also impact the price of the property itself, making it more or less desirable in the market.

If a piece of land is in a neighborhood that has desirable features like schools, entertainment venues, or jobs, it’s likely to appraise higher. This is especially true if it’s located in an area that shows signs of growth, such as a booming economy or new construction projects.

A land appraiser will also want to evaluate the condition of a parcel. This will include the state of any encumbrances that may be attached to the property, such as power lines, water, sewer, or drainage. This can be a costly and time-consuming process, but it’s essential to get an accurate value for the land.
Historical Management Practices

If the property has been managed for hunting, timber, agriculture, recreation, or other purposes in the past, this can influence its value. It’s important to find out how long the practices were in place and if they were positive or negative. If they were negative, it can make the land worth less than if they had been maintained properly.
Shape and Topography

Land that is oddly shaped or has slopes can be harder to develop, which can impact its value. Likewise, the amount of road frontage on the property will have an effect as well. The more road frontage the land has, the more desirable it will be in the market.
Size and Demand

It’s easy to assume that land will be valued based on its size, but this isn’t always the case. It’s actually more complex and takes more time to assess the value of a small parcel of land than a larger piece. This is because smaller lots typically sell for a higher price per acre than large tracts of land, so an appraiser will take that into account when determining the value of a parcel of land.

A land appraisal should be done by an experienced and licensed professional. An unbiased, independent opinion of land value is an essential part of any real estate transaction and will play an important role in your loan application process.

The appraisal process will involve a wide range of factors, including the best possible use for the land, the property’s location, the condition of the land, and the amount of frontage on the property. These will be weighed against the cost of a property and how much it would cost to build on the land. In addition to these factors, an appraiser will also evaluate how accessible the property is to roads and any zoning restrictions that might be in place.

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