However, things are different when it comes to a piece of land. It’s difficult to come up with a concrete number for a vacant land appraisal since there are fewer comparable properties to work with. That said, appraisers still have a framework to help determine what someone’s land is worth.
According to UpNest by Realtor.com, here are some things real estate appraisers consider:
- Accessibility: How easy will it be for the landowner to get to? Also, is it close to a hub where one might need to purchase groceries, supplies, and other needs?
- Utilities: Does the property already have a connection to running water and electricity? If so, investors and land buyers will be much more interested.
- Shape and topography: Is there a wild river running straight through the middle of an oddly-shaped property, or is it a standard parcel that can be easily navigated?
- Environment: It’s important to know the quality of the soil, if contamination has occurred, or if the area is prone to flooding. Appraisers can work with experts in these fields to find out this information.
- Other features to look into include if it’s in a scenic area that buyers would enjoy, such as one with beautiful views and hiking trails, or a more desolate, barren landscape.
It’s essential for sellers to know the value so they can work with an unbiased sale price, and buyers can consider their lending options. For vacant property, particularly in rural areas, the American Society of Farm Managers & Rural Appraisers is a great resource for finding experienced and knowledgeable appraisers.
Land value is on the rise
Land is a hot commodity, particularly developed land. According to a frequently cited research paper from William Larson of the Bureau of Economic Analysis, developed land only accounts for 6% of the land in the contiguous United States but represents 51% of the value of all land in the 48 states.
The paper also showed the average value of land per acre by state, with Florida coming in at $28,961 per acre, Georgia is $14,242 per acre on average, and Alabama is $12,355 per acre.
A note, the study was published in 2015 and reflects data from 2009. However, the United States Department of Agriculture takes a look annually at the value of farmland, cropland, and pasture in each state. For landowners whose property falls into that category, land has only gone up. From 2021 to 2022, the values went up in Florida, Georgia, and Alabama:
- Florida: Farmland (+ 9.6%), cropland (+9%), and pasture (+6.7%)
- Georgia: Farmland (+ 7.9%), cropland (+ 9.8%),and pasture (+ 8.4%)
- Alabama: Farmland (+ 6.3%), cropland (+ 9.9%), and pasture (+ 9.4%)
Types of vacant land
As we mentioned before with appraisals, some land is more desirable than others. Here are just a few examples of vacant land types, one of which your property is sure to fall into:
- Raw/unimproved land: This land is completely undeveloped. It may be difficult to access, and buyers are truly starting from scratch. While some may like the idea of living off the grid, for the most part, this is probably too rugged for most.
- Improved land: This land may lack structures, but does have access to amenities such as water, sewer, electricity, and access to roadways.
- CRP land: Some investors purchase land because it is “environmentally sensitive” and needs some extra care. By taking it out of agricultural use, caring for it, and planting native plants to improve the health of the land, the owners are able to get yearly payments through the Conservation Reserve Program.
Who is interested in purchasing vacant land?
There are lots of potential buyers when it comes to vacant land. After all, land is finite, and the more desirable features there are, the better. Types of buyers include:
- Home builders: These buyers want to purchase a plot of land and build on it, as opposed to purchasing an already built home. This can lead to significant savings.
- Homebuyers in new communities: In master-planned communities, homebuyers have the option to purchase land in a neighborhood and have a house built to spec there. Usually, these communities have a variety of home designs they can choose from for a cohesive look.
- Investors: Whether it’s for residential, commercial development, mixed-use, or outdoor endeavors like hunting and farming, investors are always looking for plots of land.
Selling your vacant land or a house with land
Do you own land you’re ready to sell? Meridian Trust doesn’t just purchase houses, but also vacant land. Through years of experience buying houses in multiple states, Meridian Trust has the knowledge and skill to purchase properties in a variety of situations.
To find out how much your vacant land and/or property and land is worth, call Meridian Trust at (954) 807-9087.
Note: This guide is for informational purposes only. Meridian Trust does not make any guarantees about the sufficiency of the content in or linked to from this blog post or that it is compliant with current law. The content within this blog post is not a substitute for legal advice or legal services. You should not rely on this information for any purpose without consulting a licensed lawyer in your area.
