How to Deal With Land Appraisals
Real estate appraisal, land valuation or land appraisal is the procedure of formulating an estimate of value for the property. It is a very useful process, which is applicable in many situations. Since the estimates are always for a specific property, there are certain limitations on how it can be used. Real estate appraisals are mostly undertaken by certified real estate appraisers who have gained experience in this field.
Since the only possible use of land appraisal is to establish the value of a piece of land, there are certain things that must be taken into consideration. It is always better to contact your recently sold home inspector and get his advice as to how the condition of your piece of property is. The inspector may also give you an idea as to what to look out for when buying a new house. The appraisal of a recent sold house is also useful before selling the same. You can ask the real estate agent for a copy.
Since recent land appraisals are made after obtaining the information from the soil, it is important to know what is the type of soil that your property has been treated with. Usually, land appraisals are done on a soil type-basin system. This means that the recent land appraisals are done on a ratio basis. This ratio, essentially, is the percentage of the total area of the land to the square footage of the land.
In the case of a newly constructed house, the land appraisal value will obviously be lower than that of an older home. This is mainly due to the fact that old houses generally need a lot more time to ‘curb’ or fix up. Houses that are newly built to have a smaller market value due to the fact that the house owners do not usually spend a lot of time fixing up the house. Also, houses that are situated in good areas have a higher appraised value.
When you are looking to get land appraised, it is important to find out the soil quality of the area. A soil quality certificate is usually required when you are going to carry out any land valuation. Usually, a soil quality certificate can be carried out for a small amount of money. However, it is better to get it done from a reputed surveyor.
A mortgage broker can also help you find out whether you will be paying a higher rate of interest on a property if you buy it using a hard money loan. Another reason for this is that there are many banks and lending institutions that have a hard money option. In this case, you can easily get a property sold off at a higher price. The land evaluation should be carried out before you make a decision on whether or not you will opt for this option.