Land valuation : what it is and which factors influence land value
Land value is estimated by the land valuer or property valuer, it is a value of the land and the amendments have been made on land is called land value. Landowners hire property valuers to evaluate the value of the land in order to keep it on rent or how much charge should be taken from other people for its use.
Land value can be estimated by several methods by the best and traditional one is the comparison approach. By comparing subject land and its condition with the other real estate land area.
There are several factors that affects the land value –
Location – Basically, the location matters while evaluating the land value. The position where the land is situated. If the land is near the city area and all the basic amenities are also at reachable distance than the value of the land must be high. Whereas, if the land is far from schools, colleges, office, and city area than the value will be less as comparison with the land in vicinity.
Region which highly prone to natural calamities like earthquake, flood, drought, people show least interest in buying such properties. So the land value of such area is automatically decreased.
Demand and supply – Supply is the constant factor, will not change frequently and in the case of real estate definitely not. Never forget demand and price are directly proportional to each other. So the demand of the land increases, prices will definitely go high. And when demand decreases the prices will go down. Remember, supply is limited in every case.
Forecaste – The land value may increase or decrease cause of anticipation made by the people in regards with future. If forecaste suggest the future benefit the land value will increase. If not, then value decreases.
Physical attire – Land’s physical attributes play a vital role in land value. This includes the soil quality, air and water availability, climatic conditions and more. These attributes can increase or decrease the land value.
Social factors – Like neighbourhood, type and size of families, population resides, standard of living, educational levels of people living there can also affects the land value.
These are the factors that have power to influence the land value to a large extend.
Even one can increase the land value by doing some small efforts.
Add utilises – Make sure to have a great drainage system, water availability which can increase the land value.
Add fencing – Along with increase the land value fencing can benefit you in many other ways – as it doesn’t allow the cattles to come inside in the land, perimeter of land can be seen correctly if fencing is added in the land. There are different types of fencing available in the market choose the one which is appropriate for your land.
Landscape – Growing gardens in your land is a good way to keep soil moisture locked, and to increase in the look and feel of the land. Who doesn’t like the beautiful flowers? Everyone does. It can also help you to increase land value.
The land valuation is more tough for property valuers. As it is the biggest form of asset in real estate market. To get in touch with the best land valuer or property valuer contact us. Our expert professionals are always happy to assist you in land and property valuation matters.