How Will An Appraiser Value Your Land?
Are you looking to have a piece of land appraised before you go to sell it, but wondering how the process will work? You won't have a house on the property that makes up the majority of the value, so the appraiser needs to consider other factors to determine the land's value. Here are some things that will be considered.
Location and Access
The location of the property can influence the land's value, even though you may think that location is relative. When the land appraiser goes to visit the property, they will definitely consider how far away it is from major cities, how difficult it is to get to, and things of that nature. As you can imagine, a piece of land that is highly accessible in a suburb is going to make the value much more than land that is located in the middle of nowhere.
Access can also mean how easy it is to get into the property. Is there a paved road that can easily reach it? Do you have to travel through someone else's property to get to your property? These are all things that are considered when determining access.
An easement is another factor that can change the value of your land. Some people prefer to block off their land to others so that it is truly private. However, an easement is going to force you to allow others to pass through to reach their property. You could even be forced to allow someone else to build a road on your property because of that easement.
Do you own the mineral rights to your property? You may not be aware of this unique situation, but it's possible that you do not own the mineral rights to your land. This means that the owner of the mineral rights has the ability to set up manufacturing on your property to extract oil from underneath the land if they decide to, which can lower the value of your property.
If someone does want to build on your land, the access to utilities will definitely influence the value. Having nearby access to electricity, water, sewage, and Internet can easily increase the value of the land for those looking to build and use those things. This may not make a difference to someone that wants to use the land purely for things like hunting or fishing, which may put a higher value on items like the terrain or a water source.