Question

How do you determine that the market vaule of the land

Answer 1

To determine the market value of a land, we have to look at a number of factors which are a little bit different than getting the value of a residential or commercial property. The market value of the land is simply whatever someone is willing to pay for that land. The various affecting factors are :

1) Find the comparable price of the land that was sold nearby in the near past, say two or three months. Here, the land should be in the similar location and with almost similar size and features as the land for which value are to be determined.

2) Location of the land is an important factor because two completely identical lands at two different states could bring difference of many thousand of dollars. If the land is situated in an highly developed and expansion area, it is valued high than the other, or if the land is in busy financial or retail district of a city, it is of more value to that of a small town.

3) Purpose of use of the land is the factor which is unique to value it. If the land is for commercial purpose, it might be valued more than residential use purpose. Also, if the land carries natural resources will valued more than having any.

4) Timing of valuing the land would be more important factor because if the attitudes of the buyer is good the subject land valued more than dispressed investors. In the period of war, you can have cheaper land and the developed and peace timing. If the city is growing around the land will be valued more than a scarce land.

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