When it comes time to sell, one of the biggest challenges a landowner has to wrestle with is determining the value of their vacant land. While this may seem like an easy figure to work out, it can be pretty hard to nail down a specific amount for this type of real estate. Why? The data you need simply isn’t there compared to selling a house. That’s why Land Resellers would like to take a closer look at this problem and provide you with some of the best ways to determine the value of your vacant land.
What Determines Land Value?
Unfortunately, there’s no Magic 8-Ball when it comes to determining the value of vacant land. Even a real estate appraiser can’t tell you with 100% certainty what the value of undeveloped land is. The good news, however, is that there are ways to get a comfortable “ballpark” value on a property by factoring in the answers to the following questions that prospective buyers might ask.
How is the land zoned?
When it comes to determining the value of your land, it’s important to factor in what it can be used for. Can it be commercially or residentially developed? Is it better suited for agriculture? By making sure what a future buyer can do with the land in accordance with local zoning requirements, you can get a better sense of what it’s actually worth.
How much land is on the market?
Is your land a one-of-a-kind property? Are there other properties like yours on the local market? If you own land with a great location, view, or resource, unlike other properties in the area, this could raise its value considerably. However, if your land is just like all the others listed for sale, it can be much harder to sell at a higher price.
What are similar properties listed for?
Pretend you are a potential buyer. If you are looking for a property to purchase, what options are out there, and what are their prices? Take the time to determine what sets your land apart and what a buyer would be willing to pay. By keeping an eye on the local competition, you can determine whether your property is worth more or less than other local listings.
How desirable is your land?
Think about this sensibly. The first time you saw your land, what was your first impression? Did anything stand out that made it more appealing and desirable? No matter how much money you want to make, be honest with yourself. What features does your land have that would catch the interest of potential buyers? If you go through the effort of listing your property, what details would you include? Can you comfortably set a price that buyers can’t refuse?
You should also factor in the size, shape, and dimensions of your land. This can help you determine what potential buyers might use if for someday. Is it big enough? Is it located near something that would decrease its overall value? Take a mental note of any issues you run into as they can seriously influence the value of your property.
What are the holding costs associated with your land
Take the time to think like a potential buyer and factor in any holding costs associated with your land if they were to sit on it. If they had to hold onto the property for a certain period of time, how much would that cost them in property taxes, assessments, association fees, etc? Would they be able to afford it on top of what you are asking? Would it be worth the risk?
Is your land accessible?
When selling land, accessibility can seriously impact how much a property is worth. That’s why it’s important to evaluate whether your land has road access or some kind of legal easement that would affect how a potential buyer would get to it. Without any access points, your property might as well be in the middle of the Sahara Desert. When determining the value of your property, make sure it has legal access so you can get the best price possible.
Is your land located near any local amenities?
When determining the value of your land, take the time to think about its proximity to any amenities and local attractions. Is it near a town or city? Would a potential buyer have to drive three hours to get what they need? This is an important factor to consider before setting a price when it comes time to sell.
What do nearby properties look like?
Nearby properties can seriously affect the value of your land and its sale-ability. In the mind of a potential buyer, they would rather live next to a beautiful lake rather than a run-down trailer park. In fact, most people take the time to research who their neighbors will be when they purchase any type of real estate. That’s why it’s a good idea to factor in the surrounding properties when figuring out the value of your land.
Does your land offer any hidden value?
Sometimes, the value of your land is harder to recognize. While location and what it can be used for are important factors, there may be hidden values that you should include before setting a price. Is your land located in a densely wooded area that can be harvested? Are their mineral rights? Recreational opportunities?
Hidden value can be easily overlooked when all you see is its size, shape, location, and zoning possibilities. That’s why you should take a closer look at what your land really offers when determining its overall value.
Conclusion
At the end of the day, your land is worth whatever someone is willing to pay for it. While gathering all the data you can to gain a good idea of its value is important, it comes down to finding the right buyer for your property at the right time. That’s why you should take the time to carefully consider the factors listed above, and make your best judgment before putting it on the market. This will provide you with a healthy buffer to help offset any judgment errors you may make in the process of setting the right price.
At Land Resellers, we make the process of listing and selling land easier and more affordable compared to traditional real estate websites. With the ability to list your land by map, state, or county, you’ll love the ability to connect with thousands of potential buyers with listings that can be uploaded for instant digital advertising in just minutes. To learn more about how we can take your land listings to the next level, and maintain a competitive edge, visit our online marketplace to get started today!