Since we buy land, we know that can be challenging for an appraiser to estimate its worth. The value of raw land has various factors that have to be analyzed. Most land owners or new land buyers the best possible uses of the land parcel have to be largely speculated. While a broker can perform basic analysis and properly evaluate an analysis, it is recommended to hire an experienced valuation expert for complicated assignments. For accurate valuation, the best use for the land must be deduced and a relevant valuation technique must be applied.
The best use of piece of raw land can help estimate its ultimate worth, but best use can vary from one person’s perspective to another’s. The highest and best use of a land parcel is one that returns the highest value, while being achievable and probable, and having market support.
Land owners should be impartial and unprejudiced when evaluating the optimal use of their land, while also focusing on both design and economic issues when analyzing development proposals.
If you want to sell your land, you will have to evaluate all factors that are involved in determining the lands best use, while assessing impact of value too. Since we are experienced valuation professionals, we are well aware of those factors
Optimal land use depends upon all of the following factors:
Land Size: the best use primarily depends upon land size because if the land is not large enough, it will not be abe to be used for a certain purpose.
Shape: Another integral factor is land shape, including its depth and width. Square and rectangular pieces of land are more optimal for use than those with irregular shapes. For standard prototypical buildings, pieces of land must also meet preset depth and width requirements.
Topography: From a developer’s perspective, topography must also be considered, so that the cost of cutting or filling a piece of land can be estimated beforehand. Geographical issues must also be taken into consideration as a part of a land’s topography.
Environmental Contamination: In addition, it is also necessary to explore the possibility of environmental contamination, which can be determined through a phase one environmental report.
Legal & Regulatory Issues
For highest and best land usage, legal and regulatory requirements must also be investigated.
Zoning: While zoning can be changed, the local administrator, planner, and/or elected official should be interviewed in order to determine the cost and probability, which can help estimate a land’s value.
Utilities: Unless utilities are available, it can cost money to bring utilities to a site, which should be evaluated along with the capacity to provide adequate service.
Wetlands: Some sites are classified as wetlands, and to cross, fill, modify and/or move them, certain permits are required, which at times, can be expensive and time-consuming.
Fees: Land value is also significantly influenced by impact fees and unconventional assessments that local governments tend to charge.
Location & Market Factors
Of course, the support of market demand is also essential for the selected optimal land use. Since we buy land frequently, we never fall short of support. We familiarize ourselves with the basic market trends of the real estate sector we are dealing with. We even consider the general location of a site within that market. Traits that are specific to the location of a site must also be considered.
How Do We Valuate Land?
If you decide to sell your land to us, we will analyze all of the above factors in order to determine what purpose your land will prove to be most suitable. Once we have determined the most optimal use for it, there are several methods we may utilize to value your land. However, the three most frequently used options are:
= Sales Comparisons
= Residual Analysis
= Subdivision Analysis
We assure you that we consider a wide range of factors in order to ensure that our judgment is always instinctive and intuitive. Managing the process of valuing a piece of land can prove to be quite complicated, which is the reason that seeking the assistance of experienced valuation experts like us is recommended. We are absolutely capable of helping you determine the best use for your land. For Large Projects, We can even help coordinate the entire valuation process from beginning to end, which will include overseeing engineers, environmental specialists, and surveyors.