3 Key Things That Determine Land Appraisal
Monday Feb 13th, 2023
Determining the actual price of a property is crucial to calculate the gross profits it could generate over your investments.
And no one likes to purchase or sell a property at a loss, or even on low profit margins.
To avoid this happening, you need to know the exact price of a property so you can calculate the exact figures.
Therefore, the three key things that determine the actual land appraisal are…
1. Is It Landlocked?
Knowing whether the location is easily accessible is the key point—an important denominator that reveals the marketability of a property.
Regardless of how beautiful and maintained the house is, if the house is inaccessible then it definitely affects its market value.
To be clear on this, you need to ask a few questions…
● can the property be accessed by a nearby road?
● if it has legal access?
● is it private or public?
● is it paved or graded?
● multisided or one-sided?
● who maintains the road? Local municipality or owner?
Topography is the study of shape and features of a land surface…
So its role is significant in determining the land appraisal.
Spongy land may not work for building, but it can be used as hunting land.
Sandy soils may limit the silviculture potential of a property.
So be sure that you check topography of a place before making any investments.
3. AMENITY FEATURES
Amenities can play its part in land appraisal.
Special amenities like Mountain View or waterfront...
…That will make the property more valuable from an aesthetic appeal perspective…
… Unless its existence affects the use of the overall property, for example: a large river covers most of the property and cuts off ease of access, than it means it has limited the use of property.
Sade Sanni, Broker of Record.