Introduction

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Good afternoon Joshua,

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When discussing the valuation of land and property, it involves a comprehensive assessment of the value that is based on a comparison with similar properties that may be located miles away from the subject property. Unlike home appraisals which are often done within a localized area, land valuations take into account a broader range of factors and are assessed using properties from surrounding areas. This article aims to provide a detailed understanding of the valuation process for land and property, the different types of assessors involved, and the factors that influence this valuation.

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What is Land Valuation?

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Land valuation is the process of determining the market value of a parcel of land. This is different from the traditional home appraisal process, which focuses on the value of the structure and the land it sits on together. Land valuation, on the other hand, assesses the intrinsic value and potential of the land itself, including the land’s raw materials, natural features, topography, and accessibility.

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Types of Land Valuation:

r r r Raw Land Valuation: This type of valuation is often used for undeveloped land that has no buildings or improvements. The value is based on the land's potential use and the local market trends.r Timberland Valuation: This valuation considers the value of the timber that can be harvested from the land. The value is calculated based on the current timber market and the sustainable yield of the forest.r Developed Land Valuation: This type of valuation is performed on land that has existing structures and improvements, such as buildings, roads, or other improvements, but it still has potential for further development.r Viewland Valuation: This valuation considers the value of the land based on its natural and artificial views, such as lakes, streams, and scenic vistas. The value is often higher if the property offers exceptional views that are in high demand.r Steep Terrain Valuation: Properties with steep terrain may have higher or lower values depending on the accessibility and the potential for development. The value is influenced by the steepness and how suitable the land is for development.r r r

Factors Influencing Land Valuation

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A wide range of factors can influence the valuation of land:

r r r Location: The geographic location of the land is a critical factor. Urban land is typically more valuable than rural land. Nearby amenities such as schools, parks, shopping centers, and highways can also increase land value.r Legal Restrictions: Covenants, zoning laws, and other legal restrictions can affect the usable area and development potential of the land, which in turn influences its value.r Improvements: The presence of any improvements on the land, such as buildings, roads, and utilities, can add significant value to the land. Improvements must be in good condition and in keeping with the local zoning laws.r Amenities: Natural features like access to water, lakes, hillsides, and streams can greatly enhance the value of the land. Recreational areas and scenic vistas can also increase the land's appeal.r Access: The proximity to major roads and highways, as well as the accessibility of the land, can also affect its value. Land with poor access to transportation networks can be less valuable.r Power Availability: The availability of electricity and other utilities directly affects the usability of the land and its potential for development. Areas with power availability are generally more valuable, especially when considering industrial or commercial development.r r r

Professional Land Appraisers

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Land valuations can be complex, and it is often advisable to seek the expertise of a professional land appraiser. These professionals specialize in appraising land and can provide a comprehensive evaluation that takes into account all the relevant factors mentioned above. They are knowledgeable in local and regional real estate markets, zoning laws, and development trends, making them valuable consultants in the valuation process.

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Land appraisers use various methods to arrive at their valuations, including the cost approach, the income approach, and the comparable sales approach. Each method has its own set of advantages and is chosen based on the specific circumstances of the property being appraised.

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The cost approach involves estimating the cost to replace or reproduce the land, typically through improvements such as civil engineering and installation of utilities. The income approach uses projected income, such as rental income or potential development income, to determine value. The comparable sales approach involves comparing the subject property to similar land sales in the area.

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Conclusion

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Land and property valuation is a multifaceted process that requires a thorough understanding of the land itself and the surrounding market factors. By considering location, legal restrictions, improvements, amenities, access, and power availability, land appraisers can provide accurate and reliable valuations that help landowners and investors make informed decisions.

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Keywords: land valuation, property valuation, land appraiser