Defining Land Value
In order to better understand the term “Land Value”, consider the following description.
Land value is defined as the ‘potential use of the land’:
Adjusted for the costs of improvements that must be made to the property. Examples of improvements are driveways, power requirements, sewer requirements and stipulations imposed by City, County, State or Federal regulations.
Adjusted for the costs of underlying conditions that come with the property.Underlying conditions includes, but, not limited to, easements, lot line adjustment issues, slope use and treatments, drainage issues and zoning designations.
The computations are known as “Residual Land Value”. In other words, calculate the net value of the property after all known adjustments have been made.
As with most professions, there are numerous contenders for a job. With land sales, purchases and consultation in San Diego County, the list of possible partners include the following:
Large commercial firms who have land divisions.
Traditional ‘real estate agents’. This is an individual who identifies with the purchase and sale of homes. They typically have limited knowledge regarding vacant land along with an insufficient skill set to accurately determine land value. This type of agent will usually come by way of referral as with purchasing or selling a home.
It is important to note The National Association of Realtors (NAR) established guidelines for agents who engage in business outside their proficiency: “Realtors must seek assistance from other Realtors when operating outside their area of expertise”. Most agents and clients are unaware of the NAR guidelines.
Real estate agents/companies who specialize in the niche market of vacant land. San Diego Land Experts associates with this category.
A straight forward analytical approach to accessing vacant land in San Diego, along with a proven track record, is the baseline of what is required when selecting a reliable local business partner. Being insightful and accurate in determining land value with the resources and credibility is a must when working in this specific area of real estate. Consider Mark Shea at San Diego Land Experts your experienced vacant land professional.
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