Thinking of selling your garden land? It’s important to determine its value accurately. While valuing land can be complex, understanding the right method and factors affecting its value can help you estimate its worth effectively.
CR Real Estate are here to help with our land valuation guide, perfect for sellers looking to learn about calculating land prices, choosing the best valuation method for their property type, understanding the benefits of valuing land, and more.
What is garden land?
Garden land, as the name suggests, refers to land associated with a property. In the property context, it is land that homeowners can sell to buyers intending to utilise the space for purposes such as additional development, land assembly, or commercial use.
How do you calculate garden land value?
The price of land per square meter in the UK varies depending on the location. A study conducted by The Grass People examined 50 locations across the UK, revealing an average price of £1,526 per square meter. The valuation of garden land considers several factors, including location, size, zoning, topography, and development potential. Various methods are used for land valuation:
- Sales comparison method – This involves comparing the property to recent sales of similar properties in the area.
- Income method – This estimates the income the land can generate over time.
- Cost method – This estimates the cost of replacing the property, minus depreciation.
What is the best method for valuing land?
The approach for valuing land varies based on the property type and the reason behind the valuation. For those involved in the sale or purchase of garden land, the sales comparison method is commonly used. On the other hand, if the land is intended for commercial or investment use, then the income method might be a more suitable.
Factors considered during a land valuation
Various factors can influence the valuation of garden land in the UK, including:
- Location: The land’s value is significantly influenced by its location. Properties situated in sought-after areas with excellent transportation links, amenities, and good schools tend to have higher value compared to those in less desirable locations.
- Size: In general, larger properties tend to be more valuable than smaller ones. But this can be dependent on the specific area.
- Zoning: Properties designated for commercial or residential use typically have higher value than those zoned for agricultural or other purposes.
- Development Potential: Land with potential for residential or commercial development is usually more valuable than land with limited development possibilities.
- Development Controls: When developing garden land, the construction will be governed by various rules and regulations. These include land use, land tax, premise level, and floor area ratio. These factors are considered in determining the land’s price.
- Land Records: Verified records of past purchases and buyers are crucial for establishing ownership and resolving disputes. Land lacking proper verification may be cheaper but comes with the risk of potential disputes.
- Topography: The land’s topography, including slope, drainage, and soil quality, can impact its value. For instance, land on a slope or hill may be more expensive due to construction costs.
- Access: Accessibility to roads, public transport, and amenities is an essential consideration. Well-accessible properties generally have higher value than those with poor access.
- Age of Structure: While more commonly applied to built properties, the age of structures in the vicinity can also affect land value. Land in areas surrounded by older buildings may be considered less valuable compared to land in newer developments.
Benefits of having your land valued
Knowing the value of garden land offers numerous advantages. For sellers, understanding the land’s value can help you set a realistic asking price and negotiate with potential buyers. For buyers, having knowledge of the land’s value will help to avoid you overpaying and making informed decisions regarding the purchase. Additionally, land valuation can also be beneficial for tax-related purposes. These include the calculation of capital gains tax, inheritance tax, or stamp duty land tax.
How do I value my plot of land?
We would always recommend seeking guidance from a professional valuer or an experienced estate agent familiar with conducting land valuations in your area. Their services are crucial for establishing a realistic asking price. If the price is set too high, assistance may be required in finding a buyer, whereas setting it too low could result in missed potential profits. It’s essential to bear in mind that the value of land is subject to fluctuations over time, making it advisable to obtain a fresh valuation if the land remains unsold within a reasonable timeframe.
For those in the process of buying land, a professional valuation can help to determin the fairness of the asking price. They will also help evaluate the land as an investment opportunity. Consider hiring a surveyor to examine the land’s condition and identify any potential issues.
Looking for a land expert?
If you are considering selling your land or want a valuation, why not contact our expert team today to discuss this opportunity and how we can help you.