How much does a land valuation cost?
Updated: Jul 30, 2022
Land valuation is simply analysing land to determine the exact current market value. A land developer and surveyor will determine an estimated market value for your land and can update your land boundaries and measurements.
How much does it cost to get your land valued?
It shouldn’t cost you anything to get your land valued when selling to a developer. Developers provide a free valuation to appeal to potential clients and get you to sell your land. So, you might want to choose a different agency if a realtor charges you for this.
If you want to use a chartered surveyor, your land valuation cost will depend on many factors, such as the size of your land, location within the UK and your individual needs. A simple land valuation can start from £1,500, where the surveyors will provide useful information on your land renovations, selling land with planning permissions and other environmental issues.
Land valuation benefits
Land valuations come with various benefits. It helps you to:
• Know your land resell value
• Find out what loan you could acquire if you use your land as collateral
• Calculate taxes in case of stamp duty payment to tax authorities (read this blog for further reference – Selling land: What are the tax implications?)
• Calculate your land lease value
Factors weighed during land valuation
Some of the main factors considered during your land valuation include:
1. Location of your land
Land valuation varies significantly depending on the location of the property. For example, in big cities such as London, you could get higher valuation than in small towns. A property in a city has more value than properties in a rural area or a suburb of a city.
2. Type of land
The main types of land include: agricultural, commercial and residential. In most cases, commercial land holds a higher value due to the income-generating factor than agricultural land.
3. Size of your land
Land valuations vary with different sizes of land. However, in some cases, half an acre of land can be worth more than an acre of land, depending on the land's location, type, and usage. Therefore, do not assume that a big chunk of land can have more land value before going through other factors first.
4. Accessibility
The value of your land will also depend on its accessibility. If a plot of land is not accessible enough, it will be valued lower than an accessible one.
5. Floor space index (FSI)
Floor Space Index is the floor area of a building that can be built on the land once you sell to a developer. The value of your land also depends on the total floor area of the building that can be built on the plot.
6. Soil bearing capacity
Soil type affects the cost of building a foundation. A good soil type doesn't cost much while a poor one requires a lot of resources during development. Therefore, land with good soil bearing capacity will have a higher value.
7. Environmental factors
Adverse environmental conditions such as erosion, landslide or flooding are considered when calculating the value of your land. A land vulnerable to these conditions can be valued at a lower price.
Ten useful ways to improve the value of your land
While the condition of your land and its quality is the focus of assessment, the overall land design plays a critical role in determining the final value. You can consider making some minor improvements to add value to your land. Even the most basic improvements could have a considerable impact. Some of the simple steps you can take include:
1. Fence the plot
Fencing your land is one of the easiest ways to improve the value of your land. Depending on your budget, you can use a natural fence, chain-link fence, bricks, stone walls, etc.
2. Tree planting
Planting trees not only add a little privacy to your property but also scenic beauty and fresh air.
3. Landscaping
Landscaping can greatly enhance the value of your land. Landscaping doesn't have to be costly because with proper planning, some well-landscaped trees or flowers can have a great appeal.
4. Make your land accessible
Not having good access to your land can limit the number of developers you can sell to. Do what you can to ensure that accessing your land is as easy as possible. Making it more accessible makes it more appealing.
5. Add some utilities
Some utilities such as electricity connection, sewer system, water etc., could come in handy for adding value to your land.
6. Make sure the boundaries are marked
Marking your boundaries will make it clear for the developer to identify the exact location and size of the plot. You can have four boundary markers on the four corners.
7. Plan for the drainage
Poor drainage can decrease the value of the land. Ensure water and other wastes are well planned for.
Consult NFC Homes
As you can see, there are many factors that contribute to the value of the land and how much a developer will need to build on your land. Only experts should be hired to carry out a professional land valuation, but it doesn't hurt to have a piece of insider knowledge on the land valuation process.
Here at NFC Homes, we are always looking for new sites for development, so if you own land that you'd like to sell, contact us today and our team of experts will be more than happy to assist you.