Do you know the value of your land in New Orleans? It might not be worth what you think it is! There are many potential factors that can increase or decrease the value. Learn more about the proper ways to value your New Orleans land in our latest post!
Accurately valuating of a piece of land can be a difficult process. The value will be affected by many things that aren’t typically found when purchasing a single family home. When buying or selling land in New Orleans, make sure you are working with land experts such as Louisiana Direct Home Buyers, who can help you determine its value!
Standard Valuation Approaches
Income, cost, and recent sales approaches apply differently to land than they do to residential and commercial properties. The income approach focuses on how much income a piece of property can bring in and isn’t typically applicable when talking about land. The cost approach focuses on the cost of rebuilding. Again, not applicable here. Focusing on recent sales may not be the best approach either, due to the small size of the land market. When valuating your land, there are more factors to consider than just what other lots are selling for. Sometimes lots are sold in bulk, acquired by investors at wholesale prices. Sometimes someone pays a fortune for a lot simply because of sentimental attachment. These kinds of situations greatly impact local averages.
What Is The Current Demand Like?
Observe the local market as well as the pricing of recent sales. Are lots being purchased quickly or are they spending quite some time on the MLS? How many properties are available? If there’s an abundance of properties, you may want to consider selling when there are fewer. Scarcity will increase the value of your land.
What Is The Current State of The Land?
With raw land, the cost to run utilities to it can be quite costly. When utilities are already in place, finding a buyer is easier. There should be roads with direct access to the property. Consider preparing the land for construction by clearing it. When you create ease of development and visual aesthetic ahead of time, you attract more buyers.
How Can You Add Value?
Development is the best way to add value to land. To calculate the cost of adding a structure to your lot, get quotes from different developers and home builders. If you don’t want to make that kind of financial commitment, there are still a few things you can do to increase the value. You can remove trees, plant wildflowers, clear away old slabs or remnants from old structures, take down worn fencing, as well as anything else that prepares the land for building. Improving the visual appeal of the land also generates more interest and attention when trying to sell your land.
Are you ready to sell your land in New Orleans? We can help! Send us a message or give us a call today! (504) 224-9066