The appraiser should also have experience appraising property land and not simply homes. Appraising land is quite different from appraising a house. If you contact an appraiser and they can’t do the job, ask them to refer you to someone. Briefly describe the land you want valued.
It is usually possible to check the status of their license online through your local licensing office.
If you don’t like the price quoted, shop around until you find a more affordable option. However, make sure the appraiser has sufficient experience.
You also need to make sure the right plot of land is appraised. Often, confusion can crop up when an appraiser is looking at open land or a vacant lot. If they identify the wrong parcel, then your appraisal will be worthless. [3] X Research source
The plot plan or survey, which you can get from the owner or hire a surveyor to create. The title report, which you can purchase from a title search company. The legal description of the property, which you can get from the County Recorder of Deeds or an equivalent office. The most recent tax bill, which you can get from the County Assessor’s office. The current listing agreement, if applicable.
If you live in an urban area, limit your search to properties within a 0. 5 mile (0. 8 km) radius of your property. For suburban properties, use a 1 mile (1. 6 km) radius. For rural properties, look within a 5 mile (8 km) radius. If you have to look beyond the typical radius for your property type, make sure the reasons are explained in the appraisal report.
Accessibility. Look for lots that have the same road access. Size and shape. Check the acreage. The shape also matters because it limits what can be built on the land, if anything. Check for lots with a size difference no greater than 30% from the property you are appraising. Topography. Lots that are on a steep slope or have poor soil are worth less since you can’t build on them. Location. Is it near amenities such as grocery stores, schools, and hospitals? Also, is it near anything that might decrease its value, such as a pawn shop or public housing? Water availability. If you want to build a home on land, you need to know the nearest source of water. If a source of water is too far away, then the land will be much less valuable. [8] X Research source
In many areas, you can look up the most recent price for which a property was sold on the local assessor’s office website.
If you can’t find a comparable piece of land, then go further back in time to find something similar. [9] X Research source Adjust your estimate based on the details of the land. For example, you might have found a lot that is a similar size in the same county. However, the lot you want is on a steep incline and doesn’t have a great view. You should estimate that this lot will sell for much less than its comp.
For example, some land can be developed for commercial purposes or for residential purposes only. Others allow mixed development. If your comparable properties allow commercial development, then they might be more valuable. You’ll need to lower your estimate if the land is only zoned for residential development.
Liens. A lien is a legal right to payment. Someone might have placed a lien on the land if the owner hasn’t paid a debt. In some situations, the lien will stay attached to the property even if you buy it. Easements. An easement is a legal right to use the property. For example, a neighbor might have a right-of-way over the property. This can decrease the value of the land. Deed restrictions. There may be restrictions placed on how the land can be developed, which are in addition to zoning restrictions. [11] X Research source The deed might have a restriction which makes development impractical.
The more desirable the land, the more likely you can get a higher price for it. This is a subjective assessment, but it nevertheless is important. If your land is more desirable than your comps, then raise your estimate.
Make sure the agents are familiar with the market for undeveloped land. Many agents only sell homes, so they might not have any idea what a vacant lot could be worth. You also need to talk to more than one agent. In fact, you should speak to as many as you can, since you will get a much broader perspective that way. [13] X Research source
Say something like, “Let’s say I list this property with you today. What’s the most I can get if I need to sell it in the next 6 months?”[14] X Research source The agent probably needs to look at the property, so meet them to show them around. Your agent should do their homework and look at prices on comparable properties. Don’t go with a ballpark estimate they come up with on the spur of the moment.
