Finding the real market value of vacant land has always been a big challenge for many land investors particularly the new ones. Accomplishing this goal requires time, effort, commitment, and adequate resources. Achieving this goal requires time, effort, dedication, and sufficient resources. Without ascertaining the actual property’s market value, you’re bound to make wrong decisions as a land investor.
How can I find the market value of that vacant land I am interested in acquiring?
Here are 5 factors to guide you through it
Location is crucial as far as land valuations are concerned. Factors such as accessibility, security, and landscape can have direct impacts on any vacant land. A property without a legal easement or located to undesirable features can be a lousy investment, despite its lower market value. Don’t be fooled by its affordability. Investing in a land that sits on a flood-prone zone can prove to be a costly affair due to associated costs such as flood insurance. On the other hand, a property that’s located within a good neighborhood will definitely have a higher market value.
Size, shape, and dimensions
The shape, size, and dimension of any vacant land can influence its market value immensely. These factors also determine a property’s desirability. A significant parcel of well-shaped land is undoubtedly worth more than an odd-shaped small-sized property. Is the vacant land ideal for commercial or residential investment? Does it have an abundance of trees, or it’s a bare piece of land? Does it have an abundance of trees, or it’s a barren piece of land?
A property’s desirability can either make its market value to shoot or decline. Vacant land in a hostile wasteland or barren, dry zone will obviously be less attractive for many wise investors. A beautiful landscape near a gorgeous water source, well-groomed gardens and is fertile will catch everyone’s interest effortlessly. Can the land you are about to acquire be transformed into something beautiful or not? Think twice before making your offer.
Amenities play a significant role in influencing any land’s market value. A vacant property sitting near convenient amenities such as schools, medical facilities, shopping malls, transport hubs, security facilities, parks, and entertainment joints will probably fetch a higher market value than you initially thought.
Get an appraisal.
You can do well for yourself by finding an experienced land evaluator for advice. An ideal realtor should be able to estimate how much any vacant land is worth based on adjoining properties, location, time and real estate market trends.
Don’t invest blindly. Empower yourself with the above knowledge, and you’re good to go.