Are you interested in learning how to determine land value? If you’re looking to sell your land quickly, we’ve created this guide for you here!
There’s a lot of uncertainty about the state of the housing market in 2020. Real estate experts aren’t quite sure how the second half of the year will go, and whether it will favor buyers or sellers.
The same goes for selling land. It’s not uncommon for land sales to increase in times of uncertainty. Buyers are looking for ways to exert more control in their lives and land offers the perfect blank slate.
Selling land is a daunting task if you don’t know how to determine land value, especially if you’re hoping to sell your land fast.
That’s why we’ve come up with this quick and easy guide on how to assess land value without going to too much trouble. Read on to learn more.
Work With an Appraiser
Find a licensed appraiser in your area that has experience appraising vacant land. Remember, appraising a home is a much different process from appraising land, alone. To verify that they are licensed, you may ask for their license number and contact the Department of Real Estate for your state and confirm that the license is still active.
Ask for a quote before you make any agreements. Land appraisal often costs more than home appraisal, but you don’t want to spend more than your land is worth.
Schedule your appraisal and start gathering relevant documents that will speed the appraisal process up.
What Your Appraiser Is Looking For
Gather documents such as the plot survey or plan of your land and a title report, the last of which you can buy from a title search company. Get in contact with your Country Recorder of Deeds office to receive the legal write-up of the property. Then, get in contact with your County Assessor’s office to receive the property’s most recent tax bill.
Note that some local governments will operate equivalent departments under different names. Some also charge a small fee to produce documents for you and may require a cash payment. It is best to get started on this process early in case there is any waiting period involved in the production of these documents.
Create an Estimate from Local Sales
While an appraiser can get you closer to a realistic figure, you can also estimate land value without going to the trouble of working with a third party. It will take some basic research skills and you will have to compile the data you find in order to create a workable estimate, but it is entirely possible to achieve on your own.
Using real estate search websites, track down information about local land sales that have occurred in the past six months to a year. If your property is in an urban or densely populated area, keep your search within a 1-mile radius of your own property.
If your property is in a rural area, you can widen your search to an 8-mile radius.
The goal is to find properties that are comparable to your own, and if you move too far back in time or too far from your property’s location, you are essentially looking into a different market. Once you’ve got your radius in place, it’s time to look for lots that are most comparable to your own.
The goal is to see how much these comparable properties sold for. Take into account any notable differences that would affect the cost before determining an estimated land value for your own property.
What Makes a Property Comparable?
The first thing to look for is any properties that have similar accessibility to your own. Look for the closest access roads and how far the property is from amenities like grocery stores, schools, libraries, and other features buyers look for when deciding where to set up shop.
Next, you’ll want to look for properties that have a similar size, shape, and topography to your own. That means you need to go beyond acreage and consider factors like the farmability of your land, the number of appropriate spaces for building, and more.
Finally, look for properties that have similar water availability to your own. This is often a big question for hopeful builders, whether they’re building residential or commercial spaces. How close is the nearest water source and how easy will it be for them to utilize it?
Talk to Real Estate Agents
There is the option of talking to a real estate agent. However, not unlike hiring an appraiser, you need to find a real estate agent who has experience selling vacant or undeveloped land. Rather than settling on the first one that you come across, shop around and speak with two or three.
Feel free to ask questions like, “How do I calculate my land value?” or, “If I sold my land in the next year, how much would I get for it?” Real estate agents are adept at answering these kinds of questions. They are not binding unless you’ve agreed to let the agent sell your property for you.
In order to make a fair assessment, the agent will need to come and see your property in person. If you find that you trust them and appreciate their guidance, you can work with them to sell the land. However, they will take a percentage of your closing price.
How to Determine Land Value and Sell Your Land Online
If you’re wondering how to determine land value and sell it without going offline, you’ve come to the right place. Sell the Land Now is the largest network of land buyers on the web and you can get a cash offer within weeks of listing your land.
All you need to do is tell us a bit about your property and we’ll do the rest to match you with interested buyers. Get started filling out our online form today.