3+ Sample Land Appraisal Report
What Is a Land Appraisal Report?
A land appraisal report is a document that contains information on the actual valuation of a real estate property. On land appraisals, the land is carefully examined. The appraiser will have a qualitative and quantitative evaluation. Certain criteria have to be followed in making a land appraisal report. Strategies can be performed to determine an accurate appraisal. The appraiser has to ensure that the land will be suitable for any property. So, a good procedure should be done to build down the line. Before an appraiser gives an opinion of value, he or she has to ensure that it will be the right price for the property.
By having a land appraisal report, you can have a useful tool that you can have when you are about to buy land. You can get the best value of land so you can buy the best piece of land. Having a land appraisal report is recommended. You can even have a loan from a lender by having a land appraisal report. You can use this to ensure that you have a good property that can serve as collateral. Even if the lender does not require a land appraisal report, if you want to lend a good amount of money, you should opt to have a land appraisal report that can assure the lender that you have good collateral. This way, you can get the amount of money that you truly need.
You have to consider a lot of factors when creating a land appraisal report. You need to have the best work strategy so that you can consider all the important aspects. You need to identify the land size, sales comps, location, and potential future development. But your ultimate objective is to know the market value. This is a very vital factor in buying land. If your property has a good market value, you can be sure that you can sell it at a good price. Before your land can be appraised, you should have it surveyed so that you can have a value estimation. This is how you can get the right market value.
If you want to know how to write a real estate appraisal report, you should know that you should be honest in creating a report. You must give an honest opinion about the true value of the property. After considering the vital factors that can affect its market value, you must give the right valuation for the property. This is needed so that the owner of the property can make good use of your report. The buyer can also buy the right property if you are going to give the right value. So, giving the right opinion is a must for appraisers. Without it, both the buyer nor seller will not have the right return from the deal that they are going to make.
Things to Consider in a Land Appraisal Report
Have you seen sample appraisal reports? Have you ever wondered about the things that you have to consider in creating it? If your answer is yes to both questions, then maybe you want to know the important factors in creating a land appraisal report. They are the following:
Access: One of the factors that add to the marketability of land is its accessibility. Even if the property is great, if it is hard to reach, no one will want to buy it. The properties that have easy access have better prices. Actually, those properties that are accessible are priced so highly. So, you cannot expect your property to have a high price if it is not accessible. You must expect it to have an average price that is suited for its location. So, if you are searching for land with good value, you must choose the ones that are near the road. It should have legal access. There may be other factors that affect the property’s value in regard to accessibility. If the property has a private road frontage, you need a maintenance agreement.Topography: In buying land, you must greatly consider its use potential. A wetland may be good for environmental mitigation. A swampy land may not be good for buildings. Sandy soils may have a limited potential for good properties. You should know if the land is ideal for development. Will it be good for any real estate projects? What kind of buildings can be built on it? There are some properties that are not ideal for development. So, these properties may have a lower value. If the property is beautiful, it can also add value to it. So, consider the value-influencing characteristics when it comes to topography.Amenity Features: Assessing the amenity features is important in a land appraisal report. Does the property have a waterfront or a beautiful view? These are positive factors that contribute to the value of the land. They will not be a positive factor if they impair the use of the land. But if they can add value to it, then the value of the property is increased. But if there is a large river that limits the land’s potential, then the value of that property is not much.Configuration: The layout of the property has an impact on its value. If the layout is narrow, the use potential is limited. There will be not much room for large equipment to come. The layout can affect the development potential. It can create some problems. It can make the property vulnerable to trespassers.Wildlife: You must know the kind of wildlife that can enter the property. You must search for deer tracks, rubs, or sheds. You cannot sell a property high if it is accessible by wildlife. Who will want to live in a house where a bear can enter? Who will want to work in an office where your project plan can be disturbed by a deer? If wildlife can be seen on the property, it means that you have a lot to do to develop it. So, it means a lower value for it. But if there is no trace of wildlife, it means that the property has good development potential. You can give it a better value.Location: The location of the property is very important. Different places have different values. If the property is in a more famous city, you can expect the valuation to be higher. But if the property is located in a place that is not so civilized, the value of the property can be extremely low, even if the land is so big. There is a certain price per unit in every place. You cannot expect to have a very expensive property in a province. You also cannot expect to buy very cheap property in a great city. The properties in a city have more development potential. But properties in rural areas can also be expensive if it has use potential. For example, if it was suited for timberland. But expect the property to have a higher value if it is close to schools, jobs, and conveniences.Size: Of course, the size of the property matters. Bigger properties are usually more expensive than smaller properties. That is why there is a price per square unit for properties. Lands are measured so that you will know their price. But sometimes, if you have to buy a large piece of land, the price per acre can be lower. So, it is good to buy acreage in larger amounts. Because buying in bulk can be affordable. You should also consider the demand for sizes of land. If people in a certain place always buy 1,000 acres, then the value of that size of land can be higher. The demand for sizes can vary in each place.Improvements: Enhancements can make the value of the property higher. If your land has a lodge, it will surely have a higher value. Any physical improvement for the land can make its value higher. Physical features like gates, driveways, and fencing can add value to the property. Improvements that enhance the use potential of land can contribute to its price being increased.Historical Management: Historical management affects the value of land. For example, if a hunting property has been used for years, it can be more expensive for a new hunting property. Timberland that is used for decades is also more valuable than new land that will be used for timberland. If the property has been managed or maintained before, you can be sure that it has a better use potential. So, its value is higher. This applies to agricultural land, recreational land, and other properties that have been managed before. The appraiser can give them a higher value.Soil Characteristics: The soil that is suitable for crops has a higher value. The appraiser should determine the particular use of the soil. If they are good for crops, they can be used for production and they can be more expensive. Some soil is ready for development. Some may require extensive excavation. If the soil of the property is optimal that it is good for any use, then the value of the property is increased.Zoning Requirements: You must know how much zoning limits the use potential of the land. Zoning requirements are vital factors to know the things that can prohibit the use of the land. Know the restrictions for development. If commercial use is allowed, then the value of the property is increased. Also, if it has residential use or agricultural use. Zoning restrictions may change so you must check the true zoning requirements of a place.Surrounding Area Market Trends: Neighboring properties play a great role in the value of the land. They can give better use potential or impede the land. If the property is close to conveniences, then the market value of the land is higher. It means that it can be suitable for commercial use.
Tips on Land Appraisal Report
If you plan to have your land appraised for personal, commercial, or business reasons. Then, it is essential that you have basic knowledge about the process of land appraisal as well as how their reports are written. Should you need some tips about them, then we provide you with essential information to guide you all the way.
Research the Land: Research is a vital factor in land appraisal. You need to do research before coming to a specific decision. You should take a peek at the land’s location first. You need to know how property can be built on it. If you want to have the best property sale agreement, you must carefully research the land.Review the Blueprint: To configure the property, you must review the blueprint. It is the key to the construction of the property. The blueprint tells how you can lay out a property. This is important to how you can get its actual value. Configurations can tell whether the value of land is high or low.Evaluate the Use of Land: The used potential is the best factor that you can consider in appraising land. If the property can have a good use, of course, its value is increased. Also, no restrictions should be found for the property. This means that the property has the greatest use potential.Follow Protocols: You must be sure to follow all protocols in making land appraisals. By following all the protocols, you can ensure that you can make a good land appraisal report. In doing so, you can ascertain that you can provide the right value for the property. You can be sure that you can have a good job.
How to Write a Land Appraisal Report
If you are an appraiser who is new to land appraising, writing your appraisal report can be a tedious task. But worry not for we can help you through our easy-to-understand steps in making one from scratch. But if you are in a hurry, we can also offer you ready-made land appraisal report templates to give you a quick headstart.
Step 1: Make a Summary
Make an illustrative table of contents for the content of your report. The table of contents should follow the requirements of the land appraisal. Then, make a summary of all the things that you have to write in your report.
Step 2: Write the Content
Then, you should carefully write the content. Be sure to complete all its elements. This includes the title page, letter of transmittal, certification, a summary of important conclusions, photographs, location maps, plot plan, floor plan, type of appraisal, extraordinary assumptions, limiting conditions, purpose, appraisal scope, the definition of value, property rights appraised, legal description, intangible property, ownership, market area, land description, improvement description, zoning, land value, cost approach, income capitalization approach, a sales comparison approach, and opinion of value.
Step 3: Send the Report
After finishing the land appraisal report, you can send it to the proper authority for use. The buyer or the seller can use the report in their business deals. Just make sure that before sending the report, you should ensure that you have given an honest opinion.
What are the benefits of a land appraisal report?
The benefits of a land appraisal report are you can get the best opinion of value, you can get an opinion from an expert, comparable properties can be shown to you, and you can get a lot of information about the neighborhood.
How much does a land appraisal cost?
The usual cost of a land appraisal is $300. It depends on the rate of the expert that you will hire.
Get your land appraised if you are an owner of a lot of properties. This way, you will know the right value of your properties. It is not wrong to rely on a land appraisal report that can tell you the right prices that you can ask from the buyers. Well, do you need a template for a land appraisal report? This post has 3+ SAMPLE Land Appraisal Reports in PDF. Creating a great report will be easy for you with the help of these templates. Download now!