Top 5 Factors that Impact Land Value
We often talk about things that impact the value of your home. However, we don’t talk as much about the things that could impact the value of your land. Two pieces of land may look almost identical, however one may be worth a lot more than the other.So, what decides the value of the land? There are a lot of factors and Landthink.com has come up with a list of the top five things that can affect the value of your land.
- The Stock Market – In a strong market, people have money to invest in land, buy more produce, and spend more money on hobbies like hunting. Also, in a bad market, there are much more sellers than buyers which will drive the price down. Keep in mind though that the stock market is just one of many factors and a bad stock market doesn’t always mean bad things for land sales.
- Access to Utilities – If the land doesn’t have access to electric, power and gas, the price can plummet. Solar and wind are gaining popularity as an energy source, so down the road, this might not be as much of an issue.
- Land Use – Finding the highest and best use for your land will help you get the most value out of it. That may be timber, farmland, a winery, development or something else. Talking to an expert like the ones we have here can help you determine that.
- Soil Type – This impact everything from what you can grow to what you can build. We can help you get a soil test done.
- Location – You guessed it, location, location, location. It’s bit obvious, but can’t be left out. Different land types require different locations to get their best value. Timberland just a short drive away from a lumber mill will have a higher value than one that’s hours away. A vineyard near a lot of wineries will likely fetch a higher price.
It can be challenging selling or buying land. Keeping these five factors in mind can help you understand the value of the land a little bit better. Of course, the experts at DeFoor Realty are always here to help. You can check out some of the land listings we have at our land page.