Your house is an essential factor in selling your home (obviously), but how does your lot impact your appraisal value?
Your land carries value because it can’t be destroyed. Land is scarce and permanent, so the land your house sits on is a critical key in determining lot value. Here’s why.
Lot Value Components
At LAWSON & CO, our expert appraisers know how to investigate a property to understand why it is valuable or not. There is a wide range of factors that determine the lot value.
Maybe this factor is the most apparent. The physical land will help determine lot value. If you’re thinking of building your house in swampland, for example, it could be great for hunting but perhaps not the best for construction.
Appraisers will look at sinkhole probabilities, soil, climate, and location to determine your lot value.
The most significant feature in real estate is the location of your land. Our professionals can assess lot value based on its location near schools, factories, wildlife preserves, conveniences, and shopping centers.
Does the lot have access to sewage treatment, fresh drinking water, gas, and electricity? Our appraisers will go over all of that to determine lot value.
Lot value is directly affected by lot size. The more land your house sits on, the more your lot is worth.
How is the land laid out? This can have a considerable impact on lot value. For example, if the lot is long and narrow, it will influence price. We check to see if things like the septic tank and garage are easily accessed, and whether the lot is prime for trespassing.
How is the lot accessed? Our appraisers will study how you access your home and your lot. They will look at its landlocked status, whether there is legal access to and from the lot, and if the access road is maintained by public works.
If the property is pretty, your lot value can increase. Large, mature trees, a mountain view, a river running through the yard; all these things make a property more valuable because they make it more aesthetically pleasing.
Buying and Selling in HOA Territory
Before buying or selling a lot that exists in HOA territory, make sure to read the rules and regulations. Their standards may dictate what improvements you can and cannot make to your home and your lot in the event you want to sell.
Certain construction requirements must be met, and you will likely need HOA approval before moving forward.
If you are considering buying a lot in an HOA, familiarize yourself with their bylaws and regulations. You will enter into a binding contract with the HOA, and you must follow their rules. They may have strict laws on landscaping, adding fences, painting your house, paving your driveway. They may even have say over your mailbox.
For these reasons, your lot value may fluctuate depending on if it sits inside HOA territory.
Buying or selling land isn’t something that can be done overnight. It takes a lot of oversight and planning.
It may seem overwhelming or confusing, but we can help. Call us today at 317-745-6404 for information on our real estate and appraisal services.