Share
When you represent a client in a land sale, your role may include providing the appraiser with comprehensive information about the land’s physical and legal aspects. A proper valuation benefits from detailed surveys, site plans and information about physical characteristics such as topography, soil type and vegetation. Legal details like easements and encroachments are also crucial.
Beyond the Basics
An appraiser might also gain from additional details, such as historical land use records, environmental studies, market analysis reports, recent sales comparables and zoning changes. Extensive information that exceeds the initial request can support a precise and reliable valuation for the lender, landowner or purchaser.
How Size Factors into Appraisals
An understanding of the factors involved in land appraisal can also support your work.
Larger parcels: The appraiser will consider factors such as subdivision potential, natural resource availability and suitability for broad-scale developments. A sprawling 100-acre piece of land on the outskirts of a small town may hold considerable potential for development or agricultural use, especially as urban expansion approaches. Despite its lower per-acre value compared to urban plots, its extensive space and development possibilities make it a significant investment opportunity.
Smaller parcels: In high-demand urban locales, smaller parcels may have attributes that make the land more desirable and usable, including panoramic views, innovative design and convenient access. A small plot in a bustling city can command a premium price, thanks to its strategic position and development potential.
