How to Determine the Value of a Terrain?

How to Determine the Value of a Terrain?If selling an apartment or a house could be highly accessible for an individual, selling a terrain is proven to be far more complicated than it seems. The price of a land for sale depends on various factors that can radically change the value stated by a square meter of the terrain.

Professionals see these factors as converging from the constructive possibilities offered by the location. These can allow the buyers to measure the importance of their investment, depending on the benefits they can withdraw from the purchased land.

The geographic position is a key-factor when buying or selling a terrain. It is common sense to believe that a construction situated in the city-center raises much more interest than something similar that can be purchased in the rural area. Therefore, the offers that include a land for sale in the urban area are considerably inferior when comparing them to the actual demands.

This fact can frequently modify the price established by the land owner as certain developers are ready to bid higher than the prices available on the market, than losing a plot they wanted for a long time.

Moreover, having a terrain that is near public transportation stations or arteries that realize connections with highways and railroads can automatically lead to a higher value of the included construction. As a matter of fact, a future real estate project could raise more interest in the market if he satisfies all of these conditions.

The technical features provided by a plot are obviously decisive for the final value estimation. This type of information can be access from the department of the city council that is in control of affaires concerning lands and construction.

The zonal plans, regional regulations and other similar official paperwork allow real estate agents to know in detail the possibilities that a terrain can provide. Experts consider these documents as being indispensible when fixing a price upon a land property, calculating the available space for construction and estimating the value of the terrain in a possible re-selling or renting scenario.

Professionals can also measure on the account of the official documentation the constraints imposed by the surrounding environment (high voltage lines, subterranean issues, protected vegetation, vicinities etc.)

It is a well-known fact that land owners alone aren’t authorized and don’t have the expertise to properly estimate the value of their terrain. Placing their property on the market, owners can demand to place an offer on their land and consequently, professionals that are interested by the stated property can propose different prices, depending on those available on the market.

Therefore, a preliminary estimation of the plot isn’t necessary in this case.

However, developers generally don’t approve of this type of approach and prefer to avoid engaging in a form of auction between direct competitors.

The complete expertise of a terrain can be a costly process and developers usually remain reticent when it comes to purchasing a land, if the plot is already debated by several parts. Nonetheless, it is generally profitable to contact real estate experts on sites such as to help developers and land owners meet their common demands.

Posted in Other stuff | Tagged , , , , , , , , , , | Leave a comment