Land Value Questions
What is land value?Land value refers to the value of a land that may be derived from a real estate appraisal. The land value that is got from a real estate appraisal is usually considered to be the market value of the land. Individuals need to understand the importance of land value if they are planning to either sell or buy new property. Given below are popular questions about land value asked by individuals.
Would the Value of a House Increase if the Land Value of the Area Rises Drastically?In most situations, the value of a house would increase if the land value of the area rises drastically. Appraisals of properties may be based on the sales of similar properties in the area. Hence, if the price of the land in the area increases, then it will affect the appraisal of the property and increase the value of the property.
What Percentage of the Land Value would a City have to pay an Individual for a Utility Easement?The laws regarding land value may be different in different parts of US. In some states like New Jersey, the city may have to pay the individual the reduced value of his/her land for the utility easement. If the value of the land is not diminished, then no payment needs to be made. The individual may need to get appraisals done for the land before and after the easement to determine the land value.
How can an Individual Determine the Land Value of a Vacant Residential Property?An individual may determine the land value of a vacant residential property by getting a property appraiser to do an appraisal of the land and give an unbiased opinion on the value. If the individual does not want to pay an appraiser, then he/she may get a real estate agent to run a comparables report through the MLS service.
Can the Owner of a Condominium be Taxed on the Land Value?A condominium owner may be taxed for the land value on which his/her condominium is located. He/she may be taxed on the proportionate ownership of the land on which his/her condominium is built.
How does an Easement Affect Land Value?An easement can either increase or decrease the value of a property. It if runs through the entire property and makes it difficult for the property to be used for anything else, it may decrease the value of the property. If it brings people to a commercial property, then it can increase the value of the property to a great extent.
Can an Individual Challenge an Appraisal of his/her Property if the Land Value was not included in it?An individual may have the right to challenge an appraisal and ask for a second appraisal of the property if his/her land value is not included in it. Most licensed real estate appraisers may operate according to their own rules and professional standards. No legal authority may question how the appraisal was conducted. The individual may however, file a complaint with the state department of commerce about the method of appraisal used but he/she may not be able to force the appraiser to change the estimated value of the property in the appraisal amount.
Land value assessment can have an impact on the value of an individual’s residential or commercial property. Knowing what is land value and how to determine land value will help individuals understand its importance.