There is nothing like buying your first piece of land. The anticipation for your plans whether you build your dream home, or for other purposes can be very exciting. If you are in the market for land, you may be wondering how in the world they put the price tag on it. Central Texas Auction and Realty is here to talk about some of the factors appraisers look at when determining the value of land.
#1: Land Access & Right-of-Way
The first thing that an appraiser will look at when determining the value of a piece of property is access. They want to know if there is a public road to the property or if it is landlocked. If there happens to be access to the property, they will want to know if that access is legal. Other factors play a part in this evaluation as well like whether or not the access is single-sided or multi-sided, graded or paved and public or private.
What does this land have to offer? If the land has water such as wetlands, it could be used as excellent hunting property, but won’t be optimal for building on it. Are there any rivers? If there are rivers that cut through a good portion of the property and make part of the land less useable, this could affect the value. The type of soil this land has to offer will also play a role in determining the value as well as any landmarks found on the property.
#3: Land Layout & Configuration
The layout of the land will have a large impact on the land value. If the land has an irregular layout and is narrow, it could limit the use of the land and lessen the value. The layout may play a role in the use of the land including hunting, timber management, development potential and more.
#4: How Does Location Affect Property Value?
You have heard it time and time again: location, location, location. Location will drastically change the value of any land. If the property is near quality schools, possible job opportunities or even shopping centers, it will likely increase the land value considerably. Taxes in the area are also a deciding factor when it comes to value.
#5: Size of Land Influences Land Valuation
Obviously, size has to play a role in the value of land. A good rule of thumb is buying land in acreage is usually more cost effective than buying it in small tracts. Again, this all plays into the location of the land as well as the size. The two go hand in hand.
Buying & Selling Land & Real Estate at Auction in Belton, Waco, Killeen, Temple & Central Texas
As you can see, there are many factors that play a role in the value placed on a property. If you are in the market for any land, one of the best places to purchase is at auction. Central Texas Auction and Realty can assist you in finding just what you are looking for. Call us for more information on upcoming auctions in your area.