Better Understanding Housing and Land Values

Housing and land purchases require different sets of analytical tools. If you want to learn about assessing housing and land values, here are some things to consider about each type of property.

Understanding Housing Values

When you want to get an idea of how much a house is worth, there are multiple options available to you. You can visit sites like Zillow.com, Domania.com and Homegain.com. Zillow.com provides estimations of home values through an address search that includes aerial shots of the neighborhood. Sites such as Zillow.com will give you access to values of homes in the surrounding area. The values are estimations based on property tax assessments and local trends in sales prices. These estimates can be extremely accurate in areas where homes, townhouses and condominiums are quite similar, but in areas where the residences vary on price and size, the estimates can be a bit off.

In addition to home value estimation sites, you can also visit a local country courthouse to research housing values. Investigating the records of the county appraiser or tax assessor will yield plenty of info about the values of homes in a particular area. Employing the services of a real estate appraiser or just venturing out and visiting homes that are for sale in a certain neighborhood are additional ways to assess the value of a particular property.

Understanding Land Values

Land values are heavily based on use value. The more utility a piece of land has, the higher its market value will be. The main factors considered during land value assessments are scarcity, limitations of use (like zoning and other government-imposed restrictions), desirability and the physical properties of the land itself.

Land that is located in an area primed for steady growth will appreciate much faster. If a new highway or other development brings in more traffic and residential/commercial development to the area, your parcel of land will benefit. Rezoning and the discontinuation of building and sewer permits can limit the appreciation of land values. By staying apprised of local government plans and proposals, you can stay ahead of the curve and be in a better position to choose when to buy or sell land.