Land Appraisal How to know the value of a piece of land?

What is a land appraisal?

A land appraisal is a technical and formal process that establishes the monetary value of a property. This procedure is essential not only to facilitate purchase-sale transactions, but also for other situations such as inheritances, bank loans and legal disputes. An accurate appraisal allows owners and potential buyers to understand the real value of the land, helping in making informed decisions. In addition, in a changing real estate market, having an updated appraisal is essential to optimize investments and properly plan land use. This type of service must be issued by an appraiser. certified professional.

What is a land appraisal used for?

This type of appraisal allows the person to define the fair value of the space, this with the purpose that the land can be sold or rented at the correct price and avoid losses, in addition to providing the person with the tools for better decision making and the necessary knowledge for any type of transaction you wish to carry out.

Another reason why an appraisal of this type is requested is in the event that a subdivision of land is required, since the Municipal Works Directorate will request a current appraisal certificate for the properties that you want to subdivide.

How to value a piece of land?

There are several methods used by an appraiser to carry out the appraisal and the choice depends on the certified appraiser who will measure the objectives of the services and the client:

sales comparison	If there is enough information, this is the best method for an appraisal. The appraisal expert analyzes and compares prices of similar land in similar areas, then estimates adjustments taking into account the differences and thus defines the monetary value of the space to be valued.
distribution of values	In this method, the appraiser analyzes land with buildings or built structures and calculates the percentage of the total value that the surface value represents.
Extraction of the ground	Similar to the previous method, sales of these spaces with improvements are analyzed and the value attributed to them is extracted from the total price. The remainder is the value corresponding to the surface.
income capitalization	The appraisal expert calculates the value of future income that the land could generate. The particular characteristics of the land and the area in which it is located are important factors that will define its value.

Types of Terrain

Land can be classified into several categories, each with specific characteristics and valuation methods:

Urban land: Located in populated areas, these plots of land tend to have a high value due to the demand for housing and businesses. They are valued taking into account factors such as infrastructure, access to services and population density.
Rural lands: These spaces are usually related to agriculture and livestock. The assessment focuses on the potential use of the land, the quality of the terrain and its access to natural resources.
Industrial lands: Used for production and manufacturing, their value is based on location and proximity to transportation routes and markets.
Commercial land: Designed for commercial activities, their valuation is carried out considering the flow of customers and the competitiveness of the area.

Valuation of urban spaces

Are Urban spaces are considered those that are located in inhabited or expanding areas, The land use can be residential, commercial or mixed, spaces for industrial use also fall into this group. These areas benefit demographic growth, within the characteristics of urban spaces we can find: the high population density, They have a larger area and infrastructure, which causes an increase in the price of land and a high demand in the number of homes, commercial spaces and different economic activities.

Valuation of rural plots

These areas favor proximity to nature because they are located in places far from the city and Among the main economic activities are agriculture and livestock. Within this category, spaces that can be used for animal husbandry, plantations, or forestry spaces are considered and can be the following:

agricultural irrigation
Irrigation point agricultural or auxiliary
seasonal agricultural
agricultural humidity
Induced grassland livestock
Natural rangeland livestock
foresters
agro-industrial

Factors that Influence the Value of a Land

There are multiple factors that can affect the valuation of a piece of land:

Market conditions: Supply and demand in the real estate market significantly influence value. In times of high demand, prices tend to rise.
Terrain features:
- Topography: Flat land is usually in higher demand than sloping land.
- Access to services:The availability of water, electricity and roads improves the value.
- Zoning: Local land use regulations impact development potential and, therefore, its valuation.
- Climate and locationFactors such as climate and proximity to urban or rural areas also play a crucial role.

Important aspects to take into account before requesting a land appraisal

You must not have any type of debt, either in terms of services or deed procedures.
The deeds must be in the name of the person requesting the appraisal, even if it comes from an inheritance or succession.
Hire the services of a certified appraiser so that the results are accurate and have official validity.
Keep in mind that the services that the space has at the time of the appraisal will be decisive for the value estimate.

Recommendations for choosing a Land Appraiser

Credential verification: Make sure the appraiser is certified and experienced in the specific type of land you want to appraise.
References and experience: Ask for references from previous clients and evaluate the appraiser's experience in your local area.
Transparency in the process: A good appraiser should be able to clearly explain the appraisal process and the methods used.
Clear fees: Ask for a breakdown of costs and make sure there are no hidden charges.
Effective communication: Choose someone who is willing to answer your questions and maintain open communication throughout the process.

How much does a land appraisal cost?

Square meters of land	Appraisal Cost Commercial
Land from 50 to 350 m2	$4,000.00
Land from 351 to 600 m2	$4,800.00
Land from 601 to 800 m2	$5,800.00
Land from 801 to 1,000 m2	$7,200.00
Land from 1,001 to 2,500 m2	$9,000.00
Land from 2,501 to 5,000 m2	$9,500.00
Land from 5,001 to 8,500 m2	$10,500.00
Land from 8,501 to 10,000 m2	$11,200.00