Real estate is a good investment whether it is an outstanding structure or a vacant lot. Most properties tend to get more expensive as time goes by. As a property owner, you need to acquaint yourself with your land’s real value. You must know what your land is worth to get the best deal out of it. And if your land is not yet as expensive as you want it to be, there are several ways you can maximize its worth.
How to Know My Current Land Value
Whether you are buying or selling, determining the land value should be a priority and your first step. For buyers, they do not want to purchase a property that is more than it’s worth. For sellers, they want to get the best price possible while also being competitive in the market. No matter which side you look at it, the land value of a property plays a huge role in marketing.
Some of the ways to know the current land value of the property are the following:
- Compare market prices of other lands in the area
- Check your Notice of Assessed Value from the taxation authority
- Ask a real estate agent
- Find a qualified and licensed appraiser
How to Maximize the Land Value
An empty lot does not cost as much as a lot with a structure. But that does not mean you cannot sell your land for a good price. There are strategies that you can do to increase the worth of your land for selling:
Do Not Damage the Soil
The soil is a crucial part when you have to sell empty land. The potential buyer will check whether the soil is good for various purposes. Is it great for farming? Can I plant a garden? How suitable is it for building a house? All questions may arise, and thus, the soil should not be taken for granted.
When doing land work, equipment and heavy types of machinery are called for the work. However, not all machinery is safe for your land. The machinery needed should be dependent on the land’s soil condition. For example, soft ground conditions may work best using rubber tracks than steel ones. Rubber tracks have good flotation and do not disturb finished surfaces such as grass or asphalt as steel tracks do.
Protect with a Fence and a Gate
A fence may cost you a small fortune, but this covering is a good investment. The fence will keep unnecessary trespassers out of the land while clearly defining the perimeters of your space. However, you cannot just add a fence without thinking about the appropriate design. For example, a high deer fence is best for vegetable gardens and orchards, while a barbed wire fence may be best for cattle.
Additionally, the gate should leave a lasting impression. Since entryways are the first thing that people will see on your property, they should be catchy and attractive while still keeping to their main purpose of protecting from trespassers while welcoming guests. Make sure that the gate is also installed properly with an appropriate size for cars and vehicles to enter and leave without difficulty.
Put Up Utility Lines
Most buyers will look whether your property has utility lines or none. Water, electricity, sewer and even phone lines are important considerations. Without these utilities, your land value will become significantly lower. Installing utility lines can be costly, especially in rural areas. However, the amount you spend on these lines can be recovered once you sell your property.
Utilize Your Land
You do not need to build a house or a building to utilize a piece of land. There are many other means to make use of your land to generate extra income. For example, you can plant crops so that they can yield a productive harvest in the future. But if you do not want to deal with all the farming, you may lease the land to someone else who wants to do it. This way, you will have records that your land is healthy enough for produce.
You may also consider planting fruit-bearing trees, or even just for timber. Trees provide benefits for the environment since they prevent soil corrosion and are also a place for birds to dwell. Moreover, trees and other plants add beauty to a rather empty lot. Proper landscaping truly increases a land’s value.
Some people also make use of their empty land areas by leasing them for RV parking. This will further boost your land’s value as it generates income without you doing anything at all.
Build a Structure
Structures such as a house definitely boost the market price of your land. Potential buyers will not only pay for the land alone, but also for the structure/s included in it. However, you also have to make sure that the structures built are still in good condition. You cannot expect anyone cashing out for some run-down space.
Before selling land with a building in it, do some simple renovations and remodeling first. Re-painting the façade and interior walls will help. Tidying up the garage will also help the trick. No matter how expensive the garage door brands that you use, if the garage is totally messy, it won’t sit well in the market. The same also goes for other rooms that are prone to clutter such as the basement and storage areas.
One can never know the real land value without asking for a proper appraisal from a certified appraiser. There are also various factors that can affect how expensive your property becomes. Sometimes, an empty land may be more expensive than one with a structure built. This happens when the empty land has the capacity to generate income despite it being empty. Moreover, structures are not always seen as an added value since some are often too old or in a debilitated state that they no longer hold any value to potential buyers. To maximize your land’s value, you have to be wise and careful with the strategies that you use. After all, you want to get the most out of your property as much as you can.
About The Author: Ann Marie Bantigue is a freelance writer for various industries and niches. Her willingness to promote productivity at home, along with her writing experience, led her to develop a love for interior design. She’s also a regular contributor at Decoist, a web magazine for furniture, decoration and architecture ideas.
Photo by Johnson Johnson on Unsplash
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