An accurate land appraisal is a must for sellers to truly understand what their vacant plot is worth. This comprehensive process looks at numerous factors that are essential in a trustworthy report of all the features and aspects of the land. If you've never needed an appraisal before, here's what you should know.

How Do Appraisals Work?

Land appraisals are very similar to those done on homes in many ways. The appraiser will visit the property and conduct a thorough inspection. From there, they will determine the highest and best use of the plot, meaning the best way in which the land can be used to garner the greatest profit.

Once they've established the most suitable development approach for the land, the appraiser will look for other similar plots to make a sale comparison. If there are no other similar plots to compare the land to, the appraiser will utilize a different methodology. For example, the income valuation approach entails creating a projection of the income potential of the land once it's been fully developed. 

What Are Some Factors That Appraisers Consider?

The features of the land play a key role in all valuation approaches. Accessibility is a major consideration, especially for future commercial properties. If the land is in a rural area far away from major roadways, it may have less income potential than a centrally located plot. 

The shape and topography of the land are also crucial. When plots are an odd shape, there's generally less usable land to work with. Additionally, topographic features like hills and waterways are often more challenging to develop. 

Utility access is another important element. It can cost considerable amounts of money and take far longer to create utility access when there is none. Accordingly, empty plots within a reasonable distance of utility lines, including water, gas, and electric, are generally valued higher.

A skilled and knowledgeable land appraisal company will look at the above features to provide a reliable valuation. In Stewartville, MN, the certified general appraisers at High Point Land Company are well-known for their comprehensive, accurate assessments of many types of land. They'll customize their services to meet your specific needs, answer all your questions, and provide insight into their trusted process as they go. Learn more about their appraisals online or call (507) 218-1243 to schedule an appointment.