How to Find Out Land Value of a Property You Have Inherited

Inheriting vacant land carries a profound sense of legacy and opportunity. The receipt of such a property sparks curiosity about its true worth and potential. When selling land that you have inherited, understanding its value is of the utmost importance for making well-informed decisions. This article will equip you with the knowledge and steps on how to find out land value of a property. By following the outlined approach, you’ll gain insights into the market factors, physical characteristics, and professional assistance required to calculate land value accurately.

Understanding the Basics

Inherited vacant land introduces specific considerations that differ from purchasing or owning land through other means. Some key factors to be mindful of include:

• Emotional and sentimental value. Inherited land often carries sentimental value and a connection to family history. These emotional attachments can influence decision-making regarding the property’s future use or disposition.
• Ownership and legal aspects. This type of land may involve multiple owners, such as siblings or extended family members. Understanding the legal aspects, including any wills, trusts, or probate processes, is crucial for determining ownership rights and responsibilities.
• Property maintenance and taxes. Inherited land requires ongoing maintenance, including property taxes, unless it is transferred or sold. Managing these financial obligations is important to ensure the property’s value is preserved.
• Access and utilities. The land might have unique access considerations, such as easements, shared driveways, or rights-of-way. Assessing utility availability, such as water, electricity, or sewer connections, is crucial for evaluating the land’s development potential.

How to Find Out Land Value of a Property You Inherited

Let’s go through some key steps to determine land value.

Gather Information

If you want to learn how to find out land value of a property you inherited, it all starts with gathering information. This is a crucial step in determining the value of inherited vacant land.

Documents

Collect title deeds and survey documents to obtain crucial information on ownership and property boundaries.

Additionally, gather tax records to establish historical tax obligations and assess the property’s value over time.

Similarly, retrieve permits and certificates related to the land, such as building permits or environmental clearances, to get further insight into its history.

Then, examine the will or probate documents in order to understand ownership details. Reviewing these documents helps identify co-owners or beneficiaries who may have a stake in the inherited land.

It is important to note any specific conditions or restrictions outlined in the will or probate documents that could impact the land’s use or development potential.

Land history

The next step when valuing land is to research the history of the unimproved land, including past transactions and assessments.

This involves searching public records through online platforms or local government offices.

Restrictions

Finally, explore local zoning and land-use regulations to understand the land’s potential uses and value.

Check for development restrictions, such as setback requirements or environmental conservation regulations, to assess the feasibility of certain projects.

If needed, consult local planning departments or zoning authorities, who can provide additional information and clarification on these regulations.

Conducting a Physical Assessment

Conducting a physical assessment is another crucial step in determining property value.

It involves visiting the property and thoroughly examining its condition, size, boundaries, topography, soil quality, and environmental factors.

When visiting the inherited land, it is important to assess its overall condition. Look for signs of erosion, overgrowth, or any damage that may affect its value or potential use.

Also, determine the size and boundaries of the undeveloped land. Refer to survey documents obtained earlier to identify the official boundaries, and look for physical markers such as stakes or fences that indicate the property’s limits.

Make sure to also evaluate the land’s natural features, such as slopes, hills, or flat terrain, as they can impact its development feasibility.

Consider the fertility and composition of the soil, which may determine its suitability for agriculture or construction purposes.

Additionally, be aware of any environmental factors that could affect the land’s value or potential use, such as wetlands, protected habitats, or potential contamination concerns.

Seeking Professional Assistance

Thinking about seeking professional assistance is essential when determining the value of inherited vacant land.

A real estate appraiser conducts thorough evaluations, taking into account factors such as location, size, zoning regulations, and comparable sales. Their expertise ensures that the land’s current market value is accurately estimated and can be relied upon for various purposes, such as estate planning or a potential sale.

Surveyors are crucial for precisely determining the land’s boundaries and conducting a boundary survey if necessary.

They use advanced techniques and equipment to accurately measure and map the property.

Surveyors can also identify any encroachments or discrepancies in the boundary lines, ensuring that the land’s legal description is correct. Their expertise helps avoid boundary disputes and provides a clear understanding of the land’s physical extent.

Research Comparable Sales

Researching comparable sales is a crucial step in calculating land value. Comparable sales, often referred to as “comps,” are recent sales of similar properties in the same or similar areas. These sales serve as a benchmark for assessing the value of the inherited land. Understanding the concept of comps and their relevance is essential in accurately estimating the land’s worth.

To find recent sales data for similar vacant land in the area, use online real estate platforms and property databases, which can be valuable resources.

Assess the size of the land and ensure it aligns with the inherited property. Look for comparable properties with similar acreage or dimensions to obtain a more accurate valuation. Then, evaluate the location. Properties in close proximity to the inherited land are likely to have more comparable value due to similar market conditions and neighborhood factors. Finally, consider any unique features or amenities that may impact the value, such as waterfront access, scenic views, or proximity to amenities like schools or shopping centers.

Considering Market Factors

Market conditions have a significant influence on land value. Understanding the current state of the real estate market is essential when determining the value of inherited vacant land.

Demand

Market conditions can fluctuate based on factors such as supply and demand, interest rates, economic stability, and investor sentiment. During a seller’s market, where demand outweighs supply, land prices tend to rise. Conversely, during a buyer’s market, where supply exceeds demand, land prices may experience downward pressure. Staying informed about market conditions helps provide context for assessing the land’s value and making informed decisions.

Local economy

Local economic trends and development projects also play a crucial role in determining land value. Economic growth and development in the area can positively impact land values. Factors such as job opportunities, population growth, infrastructure improvements, and new commercial or residential projects can create increased demand for land. Stay updated on local economic indicators, such as employment rates, industry diversification, and major development plans, as they can provide insights into the potential appreciation of the inherited vacant land.

Location

Moreover, location, accessibility, and amenities are key factors that influence land value. The location of the inherited land, including its proximity to urban centers, desirable neighborhoods, transportation hubs, and amenities, can significantly impact its value. Land situated in prime locations with convenient access to major roads, public transportation, schools, shopping centers, and recreational facilities tends to command higher prices. Additionally, the availability of utilities, such as water, electricity, and internet connectivity, can also impact the land’s value. Consider these factors when assessing the inherited vacant land, as they contribute to its desirability and potential for development or use.

Finalizing the Land Value

After gathering information from various sources, it is crucial to consolidate and analyze the data to complete the land valuation. Consider all the factors and insights gained from conducting a physical assessment, researching comparable sales, considering market factors, and using appropriate valuation methods.

Based on the information gathered, determine a realistic and fair value range for the inherited vacant land. Consider the range of values obtained from different valuation methods, the characteristics of the land, market conditions, and any unique factors that may influence its value. It is essential to take into account both the upper and lower ends of the range to provide a comprehensive valuation that considers potential fluctuations and uncertainties.

It is important to recognize that the value of the inherited vacant land may change over time due to evolving market conditions. Therefore, periodic reevaluation is recommended to ensure the valuation remains current and reflective of the market. Factors such as economic trends, development projects, and changes in demand can impact land values. By re-evaluating the land periodically, you can stay informed about its potential appreciation or depreciation, allowing for informed decision-making regarding its future use or potential sale.

How to Find Out Land Value of a Property: Final Thoughts

Discovering the true worth of inherited vacant land requires a comprehensive approach. By carefully considering all these aspects, one can arrive at a realistic and fair value range for the land.

Armed with this knowledge, you can make informed decisions regarding the inherited vacant land, whether it’s for future development, investment, or potential sale.

If you decide to sell your land to SimpleLandSelling, we will evaluate your property and offer the best price based on current market conditions. Not only do we provide a fair cash offer, but we also cover the closing costs! And you can save on real estate agent commissions and listing fees. Contact us today to learn more.