Land is one of the best real estate investment assets one can own. There are many advantages of owning land, including developing it for residential or commercial use. More so, land can act as collateral for financial borrowing. Better still, land is an appreciating asset with a high resale value. However, the main step in unleashing the value of land is conducting a property valuation. A land appraisal helps to establish the actual value of the land. You may need to hire an independent land appraiser for this service. So, is hiring a professional land appraiser a worthy investment?
Benefits of Hiring a Land Appraiser
Establishing Asset Value
The primary role of a land appraiser is to establish the market value of the land. Typically, the asking price of land is usually a mark-up price that may not reflect the asset's actual value. When you hire a land appraiser, the professional will consider property features and prevailing market prices to determine the true value of the land. In this way, one can make an informed decision on whether purchasing the land would be a worthy investment.
Determining Property Use
A land appraiser also helps the client determine the best use of vacant land. In this case, the expert lists down all the possible uses of the land, including construction, farming, or recreational purposes. Then, the appraiser analyzes the viability of each option. The appraiser will assess features such as the size, gradient, soil, and access of the property. They also consider land zoning regulations. It helps a prospective buyer decide whether the land is a viable investment.
A land appraiser helps you to fulfill loan financing requirements. Most lenders require an independent land appraisal before lending. For example, a land appraisal would be part of a mortgage qualification requirement. Alternatively, a land appraisal would be necessary if one uses the land as collateral to secure a loan. The lender would require an assessment to determine the value of the land and establish the credit limit.
Settling Estate Disputes
The service of a land appraiser is essential in settling estate conflicts. There are scenarios where estate division becomes a source of disputes. Typical land disputes may result during divorce or upon the demise of the estate owner. Hiring a professional land appraiser provides an independent estimate of the property value and becomes the basis of a fair settlement.
Never make a financial commitment on a land property without engaging an impartial land appraiser. A professional land appraiser will support you to make informed decisions, avoid losses, and overcome asset disputes.