land appraisal
Land Appraisal
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Do you know what a land appraisal is?
The land appraisal allows you to delimit the economic value of a sector or part of land, which may correspond to urban areas for commercial or residential land uses, as well as agricultural and rural areas.
Why is a Land Appraisal useful?
This type of appraisal is usually a condition to be met in regards to land sales or rental processes, in this way, the appraisal will be useful for defining the exact value of the space.
Another reason why this type of appraisal is necessary is in the event that a land is required to be subdivided, because the Municipal Works Department will need a valid appraisal certificate for the properties that want to be subdivided.
What is needed to do a Land Appraisal?
To carry out an appraisal there are different methods that can be carried out according to the client's purposes, among which we find:
- Sales comparison: When there is sufficient information, the appraiser analyzes and makes a comparison of the costs of properties on similar land, then the adjustments are calculated considering the differences and defining the monetary value of the corresponding area.
- Disposition of values: In this part the appraiser examines the land that has buildings and calculates the value of the surface, this being a percentage belonging to the total valuation.
- Extraction of the land: In a similar way to the previous aspect, an analysis is carried out on the sales volumes of the rooms with advance and the assigned valuation is taken from the total price, while the rest belongs to the surface.
- Capitalization of income: Appraisers set the potential value of the income that the land may have in the future; both the area and its nature are important elements to value.
What distinguishes an urban space from a rural one?
They are those whose location is in inhabited or expansion areas and that are characterized by their high population density, as well as a wide extension in terms of infrastructure, often causing an increase in the cost of land combined with high demand in the amount of households.
On the other hand, the land use can be commercial, residential or mixed; Spaces intended for industrial use can also be classified within this section, which enrich demographic growth.
Rural areas are characterized by their direct contact with nature, because they are located on the outskirts of the city. In these types of areas, the activities that define their economy are those linked to the countryside, such as agriculture and livestock, for example. which are suitable spaces for the conservation of plantations, forest areas and animal husbandry, these can be:
Agricultural:
- irrigation
- From irrigation tip or auxiliaries
- Temporary
- Moisture
Livestock
- From induced grasslands
- From natural rangeland
Forestry
Agricultural
Conditions to be considered
There are several aspects that must be kept in mind when carrying out procedures and not have setbacks.
- The deeds must be in the name of the person carrying out the procedure (also if it is by succession or inheritance)
- There can be no debts with the land, payments must be up to date.
- Verify that the appraiser is certified, in this way we ensure official validity.
- Consider that any service that exists in the appraisal space will be crucial to calculate the value.
What is the cost for a land appraisal?
This is according to the square meters corresponding to the land as well as its location. Taking this into account, the appraisal can be made and the land valued, but the cost can vary from 2,000 mn to 50,000 mn.
What is required to apply?
It is necessary to have documents that corroborate the validity of the property throughout the valuation process, such as:
- writing copy
- Copy of property receipt
- Copy of water receipt
- Architectural plans
What documents must be delivered upon completion of the valuation?
When the appraiser concludes the valuation of the land, variable documents can be delivered, which give the applicant security about his land and everything it has to use in different procedures.
These documents generally include:
- Establishment of the value of the property
- Photographic record
- Architectural plan
