Investing in raw land provides a potential for development and profit from its low cost. Although, it comes with a challenge: pieces of land in their natural state are not easy to sell because of their appraised intrinsic value. If you own raw land, chances are, you have to find a way to increase its value so that it becomes more attractive to the market. Find out how you can do so with these tips to improve land value.
Simple and Inexpensive Ideas to Increase Land Value
What is Land Value?
Land value is the appraised value of a piece of property, including the land as it is and the improvements that have been made to it, but not the structures built on it.
The land value is set and determined by third-party real estate appraisers. A land appraisal is crucial for a lender or financier to decide on offering loans to prospective buyers or refinancing a property holder. Getting a high land appraisal is a positive sign because, for the lenders, the loan is less risky.
If you have not yet, hiring an experienced appraiser to determine the value of your land and the possible advantages and disadvantages can help you get the most out of your investment. Meanwhile, let’s explore these inexpensive ways to improve your land value:
Adding or Improving Gates
The gates or fences are the first things a client sees when they visit your property. Aside from being protected from trespassers, gates and fences serve as a frame of your land and imply that it is being maintained and looked after. Visually, it would be easier to determine the measurements of your land without looking into the survey documents.
Planting Greens and Landscaping
Depending on the type of soil in the raw land, you can introduce a suitable crop to feature your land’s agricultural potential. There is also an option to boost soil fertility. This method can also result in sales from your product and consequently increase your land’s monetary value.
Setting up a landscape is also a good idea to make your land aesthetically pleasing. Clear the overgrown shrubs, bushes, and garbage, or hire a landscaper to help improve your property’s curb appeal. You can also set up a pond or stream and surround it with trees which can block unattractive neighborhood views.
Having a structure in your land – whether a house, a storage space, or even a barn – may help increase your land value. It gives an impression of the land being a liveable place. With your structure, you can consider having utilities such as power and water installed. Although adding utility lines can be pricey, it can increase your land value.
Turn Zoning to Your Advantage
Even if your land’s location is not the most ideal for now, you can count on the zoning map of your city to determine the development plans in your area. Lands may be zoned for residential or commercial use or both.
If your land is located in Oklahoma, this zoning map may be helpful to you. The land you own could be intended in a zone for housing or industrial purposes, depending on your goal. The market value of your land may change in the near future.
Increasing land value is crucial if you are looking to invest in your raw land. When doing so, consider inexpensive alternatives such as adding gates, planting and landscaping, building structures, and taking advantage of your city’s zoning. To get you started, it is best to consult with an appraiser. They will look into any flaws or defects that exist in the property that may affect its value. From there, you can use these simple ways to maximize your returns so you can sell your property for the highest possible price.
Not sure how to increase the value of your land? Our experienced and dedicated staff at Wiggins Auctioneers creates accelerated marketing plans that result in successful real estate transactions. Get in touch with us to know more.