Land is one of the most expensive commodities on the market. Whether it has a building on it or not, land prices follow the same demand and supply trends as residential and commercial properties. In today’s real estate market with skyrocketing prices on land, it is highly essential to understand the costs of a piece of land, even if it is vacant.
George K. H. Lau & Associates, Inc. has been in the business of land appraisals for years now and can serve you well on your project. Our appraisers can perform investigative research and accurate inspections of the property for you to verify the land is the right space to build your home, business or farm on.
We can calculate the fair market value of the property so you don’t get gouged or left with a piece of land that doesn’t serve your purpose. We invite you to contact us at (808) 536-8651 to get a fast and accurate appraisal done on your piece of land.
Why You Need a Professional Land Appraisal
If you’re new to the process of investing in vacant land, then such asset appraisals can appear to be a daunting task. Since you would not know the aspects of the land to look out for when assigning a dollar amount to the property, your personal appraisal can be highly skewed and, in some cases, entirely inaccurate.
If you choose to forego a land appraisal before purchase, you could be surprised by obscure problems that are not apparent until you start constructing your building on the property. This could mean that you have your hands lost money, time and missed opportunities to find the right land that would suit your needs.
The above-stated concerns make a land appraisal a vital and dire requirement for you before you decide to purchase a property. George K. H. Lau & Associates, Inc. is a trusted expert with comprehensive knowledge of your market and decades of experience managing vacant land appraisals. Entrust your land appraisal to the efficient and effective services of our appraiser so you can rest easy.
Key Factors that Determine Your Property Value
George K. H. Lau & Associates, Inc. will inspect your land’s potential and identify what utilities it could match with in the future. Investors may choose to construct buildings, open a business or use your land for agricultural purposes. If the land you’re eyeing has the potential to make such concepts into reality, it can be worth a lot more than you’d initially anticipated.
When we are appraising your land, the key factors we look out for are:
- Utilities and Improvements
- Location and Surrounding Properties
- Shape, Topography, and Size
- Environmental Factors
When you’re making such a large level of investment, it becomes a crucial task to make sure that the money you’re spending in purchasing the land is worth it. For instance, the area may be inconveniently landlocked or have poor soil quality, or it has a higher likelihood of flooding in the event of a storm, making it difficult to build on.
Honolulu Land Appraisal
Vacant Lot Appraisal and Agricultural Land Appraisals
George K. H. Lau & Associates, Inc. has proven expertise in the area of land appraisal for various forms of real estate in the Honolulu region. Our vacant land appraisal services include residential, commercial and industrial lots for development and agricultural land and building appraisals for rural areas, acreages and ranches for farming or recreational development.
Land Value Estimator
A broader analysis that encompasses a wider range of variables must be studied by an appraiser when calculating values for vacant land. One of the key considerations is determining what the land can be used for, or the feasibility of the specific planned development. Once the ‘highest and best use’ is determined, the standard sales comparison method is used for market analysis.
Vacant land appraisals require more detailed information and a high level of expertise that may include trends in new construction and research on competitors in similar development markets in order to provide accurate cost and profit analysis reports.
Purpose of a Vacant Land Appraisal
When investing in land, it's crucial to ensure that you're getting your money's worth and making a solid investment. Many plots of land can have concealed problems that are difficult to identify for prospective buyers. Poor soil quality, frequent flooding, and other factors can create challenges for building on a piece of land, which is why it's essential to do thorough research before making a purchase.
George K. H. Lau & Associates, Inc. conducts thorough research and inspections of the property you're eyeing to make sure that it's a viable location for your home or business. We will inspect the lot for hidden issues and provide you with a fair market value, so you don't overpay when investing in new land. We provide our results in a clearly worded and well-researched report you can depend on to make your decisions.
How Our Land Appraisers Work
Our land appraisers typically use sales data of comparable properties to determine the market value of vacant land. When we compare empty land prices, we typically evaluate the land's highest and best use first, as the best use for a piece of land is the most feasible and profitable way to develop it.
Varied Real Estate Valuation Techniques
If a plot of land is situated in a region with both residential and commercial properties, our appraiser will need to evaluate if the land would yield a higher value as a business or a residential property. If the property is subject to local zoning regulations that allow for only residential or commercial use, our appraiser will consider those regulations when determining its value.
When no suitable comparable sales are available, we won’t be able to provide a conventional evaluation. In such cases, we’ll use alternative valuation methods. Our appraiser may consider using the income approach to value the land if there are no appropriate comparisons. For example, if the land is utilized for business purposes, the projected income can be used as a valuation method.
No matter the type of land or comparable properties near it, our qualified team can provide you with accurate and bank-recognized vacant land appraisals.
When to Schedule a Real Estate Appraisal?
When purchasing vacant land, similar to residential or commercial buildings, there are several reasons why you might want a land appraisal to obtain a clear understanding of the property's specifics and its approximate value. The most common purpose is when evaluating land as an investment, but other instances when a real estate appraisal is worth acquiring can include the following:
- Settling an estate
- Challenging high property tax assessments
- Finalizing a divorce
- Providing insurance coverage
- Setting an asking price
- Determining mortgage loan to value
A lack of evaluation from a qualified land appraiser could lead to a significant financial mistake when purchasing or selling a lot or larger land parcel. Land that is either undevelopable or requires considerable expenditure for development can pose a severe problem.
Speak to our expert appraisers for a secure service. We’ll ensure that you receive precise evaluations and information for your land.
Land Appraisal Service
Commercially zoned real estate in Honolulu often requires the qualifications of an experienced and licensed appraiser to provide a detailed market evaluation prior to, or during development. George K. H. Lau & Associates, Inc. offers specialized services that include appraisals for both vacant land and agricultural land in the Honolulu region that can be customized for:
George K. H. Lau & Associates, Inc.’s qualified experts begin research on zoning regulations laws in the specific areas to properly verify whether vacant land is listed as residential, commercial or industrial and to ensure that no building plans or approvals are already placed on the property.
Unlike sales comparisons used in standard residential and commercial real estate market evaluations, George K. H. Lau & Associates, Inc. appraisals for vacant land in Honolulu reflect figures which are generally calculated at price per square foot, or price per ‘buildable’ square foot. According to the applicable laws and regulations in each Honolulu region.
If your land is already under development a George K. H. Lau & Associates, Inc. appraiser can provide development cash flow evaluations which factor in construction costs and other expenses. Some examples being, insurance, real estate property taxes and developer and commercial owner profits and/ or lease commissions.
Data on adjacent properties and any planned development in the area may also affect and/or increase the valuation for vacant land, particularly if property nearby is being purchased for expansion or additional development.
Agricultural Land Appraisers
Our appraisers are recognized by the region’s major lenders and financial institutions. George K. H. Lau & Associates, Inc. maintains a full database of both urban and rural land properties in Honolulu. We provide reports ranging from a full narrative to shorter form. For more information on agricultural land appraisal services please give us a call.
Real Estate Appraisal Professional Ethics
All George K. H. Lau & Associates, Inc. appraisals are customized to meet your specific needs and written in accordance with the Uniform Standards of the Professional Appraisal Practice and to meet the requirements of all local, state and federal laws. Contact George K. H. Lau & Associates, Inc. for a free consultation and to speak with a member of our team regarding vacant land appraisals.