Some of the most Important Elements of any Residential, Commercial, Income, Investment, Land <\/strong>Real Estate Valuation<\/strong> include:<\/strong><\/p>\n\n\n\n Rural vs. residential<\/strong> Many landowners possess vacant lots that will someday become the site of a house or building. Real Estate Agents should treat rural tracts of land or farmland used for agricultural purposes differently than they do residential or commercial land. Rural appraisals can be more challenging due to the lack of sales data, which is naturally the result of having many fewer homes than suburban or urban markets,<\/p>\n\n\n\n The Real Estate Agent should consider some of the same factors as residential valuations, but the size of rural land is often much larger, adding extra time and cost to the valuation process. The value will also hinge on things like access, topography, configuration, the farm economy, the quality of the soil, irrigation and drainage, the local climate and rainfall, and any current farming regulations that might limit usage of the land.<\/p>\n\n\n\n To determine whether the owner\u2019s use of land qualifies as \u201chighest and best use,\u201d Real Estate Agents should ask the following questions:<\/strong><\/p>\n\n\n\n What factors influence undeveloped land property values?<\/strong><\/p>\n\n\n\n Accessibility<\/strong> The more road frontage and the more acres the road touches, the higher the land value will be. For example, if there are 500 feet of road frontage and the land is very narrow and deep and hard to build on, the back acres won\u2019t be worth nearly as much. But a large corner lot with lots of frontage will have much more value.<\/p>\n\n\n\n Usability<\/strong> Utilities<\/strong> A land developer may have the option to use a septic system or water wells, but these solutions also cost thousands of dollars. Generally speaking, having power, water, and sewer access at the property line will drive the value of the land way up.<\/p>\n\n\n\n Topography<\/strong> Amenities<\/strong> Zoning<\/strong> Some of the most common types of land zoning include:<\/strong><\/p>\n\n\n\n Beyond what type of building can be constructed, zoning laws can also control specific construction details, like the height of structures. The Real Estate Agent should consider the zoning when determining the valuation. If the laws are restrictive, they could potentially deter would-be buyers.<\/p>\n\n\n\n\n
Additional elements to consider when valuing undeveloped land<\/strong>.<\/h5>\n\n\n\n
Both land appraisal and valuing an existing house can be a complex process but there is a difference between rural and residential property values. There are a multitude of factors that your Real Estate Agent must evaluate and give weight to when valuing undeveloped land. Below are some of the main factors that impact Austin-Round Rock land values:<\/p>\n\n\n\n\n
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One of the biggest drivers of a piece of land\u2019s value is the amount of frontage \u2014 that is, how much of it is accessible by road. Particularly if you\u2019re selling a larger tract of land that will be subdivided, each municipality may have specific zoning rules that dictate how much road frontage each lot must have..<\/p>\n\n\n\n
The portion of usable space is one of the key factors in farmland values. If you have 100 acres of land, and 50 of it is usable and the other 50 is comprised of gullies and trees that can\u2019t be plowed or cultivated or grazed, the value of the usable acres will be much higher than the rest.<\/p>\n\n\n\n
A Real Estate Agent should take into account the availability of water, sewer, and electrical hookups for the land. If these elements aren\u2019t available, the buyer would need to bring them in. That project can cost anywhere from $10,000 up to $30,000 or more, depending on the scope and size of the land. Plus, it can take months to obtain all of the permits and complete all of the work.<\/p>\n\n\n\n
The topography, or geographical makeup, of a piece of land can have a big impact on its value. For example, swampy land won\u2019t be suitable for building a home, but a buyer might want it for recreational purposes. A Real Estate Agent should examine the land\u2019s physical features \u2014 including the presence of mountains, steep grades, rivers, lakes, and valleys \u2014 as a means of determining its use potential.<\/p>\n\n\n\n
Just as a built home comes with certain selling points like a pool or location on a quiet street, a parcel of land can offer certain aesthetic or functional features that make it more valuable. For example, a Real Estate Agent could attribute value to lake access, a fishing pond, a spectacular view, hiking or walking trails, or other desirable elements, as long as they don\u2019t impede on the land\u2019s usability.<\/p>\n\n\n\n
Most land has been zoned, which means it\u2019s been classified for a certain type of use. The current zoning requirements may limit how a buyer can use or develop a parcel of land, which has a direct impact on its value.<\/p>\n\n\n\n\n