How to Determine Land Value
Find a qualified appraiser., Check the appraiser’s license., Ask about the price., Schedule your appraisal., Gather helpful documents., Read the appraisal.
Step-by-Step Guide
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Step 1: Find a qualified appraiser.
Look online or in the phone book.
You can also get a referral from a bank or real estate agent.
Check to see if the appraiser has a credential from one of the recognized professional societies, e.g., the MAI designation.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 explain the land you want valued. -
Step 2: Check the appraiser’s license.
Confirm that the appraiser is licensed with your state by asking for their license number.
You can then call your state’s Department of Real Estate (or equivalent office) to check that the license is active. , Before hiring the appraiser, get a quote in writing for the appraisal.
Don’t be surprised if the cost is more than the cost for appraising a building.
Appraisals of vacant lots require more extensive research and familiarity with land records.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. , Try to schedule for a time when you will be available.
You can answer any questions the appraiser has and possibly ask a few of your own.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., You can make the appraiser’s job easier by gathering information ahead of time and sharing it with the appraiser.
Check if any of the following are available:
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. , The appraisal should be well-organized and have information about local land use regulations.
It should also explain how the appraiser investigated the current market conditions.If you have any questions, follow up with the appraiser. -
Step 3: Ask about the price.
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Step 4: Schedule your appraisal.
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Step 5: Gather helpful documents.
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Step 6: Read the appraisal.
Detailed Guide
Look online or in the phone book.
You can also get a referral from a bank or real estate agent.
Check to see if the appraiser has a credential from one of the recognized professional societies, e.g., the MAI designation.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 explain the land you want valued.
Confirm that the appraiser is licensed with your state by asking for their license number.
You can then call your state’s Department of Real Estate (or equivalent office) to check that the license is active. , Before hiring the appraiser, get a quote in writing for the appraisal.
Don’t be surprised if the cost is more than the cost for appraising a building.
Appraisals of vacant lots require more extensive research and familiarity with land records.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. , Try to schedule for a time when you will be available.
You can answer any questions the appraiser has and possibly ask a few of your own.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., You can make the appraiser’s job easier by gathering information ahead of time and sharing it with the appraiser.
Check if any of the following are available:
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. , The appraisal should be well-organized and have information about local land use regulations.
It should also explain how the appraiser investigated the current market conditions.If you have any questions, follow up with the appraiser.
About the Author
Michelle Watson
A passionate writer with expertise in lifestyle topics. Loves sharing practical knowledge.
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