Determining a worth for your land can be very hectic, mostly if you do not know how to make an appraisal. If the land appraised value is too high from the marked price it may prove to make the agreement or break it. Although appraisers are subjected to strict guidelines, most of their job is subjective, that means it is important for your land to impress them in a good way. Fortunately, there is so much you can try to help your land be appealing at its best.
Take an Honest Look At Your Land and Determine Deficiencies
The first action towards acquiring an appraisal may prove to be toughest for sellers. You need to study your land with a critical eye and familiarize yourself with areas that needs more attention in terms of maintenance. Practicing enables you to reason like an appraiser and point out any factors that may adversely affect your land value. Study the land carefully to ensure everything is in good order.
Determine Methods to Bring Up the Quality of Your Land
While you are at it you should consider things like soil erosion, loss of organic matter, acidity of the soil, drainage and other activities that decline the productivity. As you go around the land write everything down on one list for future reference. Proceed and do some projects like adding residues of plants to degraded soils and enhancing continuous harvest of products. Planting more trees and cover crops will also improve the value of your land.
Create a Highlight Sheet to Document Changes
Formulate a highlight sheet stating all the improvements that have been made to the land. Highlight sheets are crucial tools since they enable the appraiser to see everything that has been adding value to your land with just one look. The best bet for you is to have a meeting with your agent and come up with a list of all the upgrades that have been made to your land within the recent past. It is always wise to include the approximate dates of these projects as well. The appraised value of your land will highly depend by how it likens with similar assets that have traded in your area within the recent past. Most agents will attempt to assist appraisers with that investigation by providing them with comparables that validate the price of sale. It is the seller agent’s responsibility to prepare a comp report exhibiting how best the property in question is in relation to the existing market. Unfortunately, just like anything else in the appraisal procedure, comps are subjected to rules as well as your appraiser’s personal view. Having said that, your land agent will probably be conversant with how the appraisal procedure is managed in your location. Ask your agent to make a list of comps to be handed over to your appraiser. Whether the appraiser elects to consider them, they can be accessed if you need to request for an appeal even after the appraisal.
A land appraisal is scrutiny that gives worth to your land based on size, condition, location, fertility of the land and other aspects. These appraisals are crucial before a buyer makes a decision to buy your land. As a seller it is your wish to have your land to have a higher appraisal as it can. when appraisal is good, it enables you to get a better selling price for your land
Tell us how your appraisal process went and if you learned anything about the process you didn’t know before. We would love to hear from you.