Making a valuation on a piece of land or on any asset can be a very subjective process. The value of an asset at a particular point in time depends largely on the market forces and how the asset compares to recently sold assets on the market. As the owner of land, you may find that you receive differing valuations when you ask several parties.
If you are aiming to sell a piece of land in the state of Arizona or if you are looking to gain a good valuation estimate for banking reasons, it is important that you understand how the valuation process works so that you can be well-equipped to challenge the process when necessary.
What physical factors influence land valuation?
There are several factors that have the potential to influence the value of a piece of land. While the size of the land is a very big factor, the shape of this land can make it more or less valuable, since narrow or inconveniently shaped land may be less convenient for a potential buyer.
In addition, a big factor is topography. A steep patch of land, for example, can be worth a lot less than a flat piece of land, and some pieces of land may be problematic when it comes to drainage, which can further influence the value.
If you are getting your land valued in Arizona, it is important to have a strong knowledge of the current state of the market and to ensure that you receive an accurate evaluation.