Factors considered during Land valuation

1. LOCATION OF THE LAND

We all know that the location is everything when it comes to land ownership. As such, the value of property in a city such as Nairobi has more value in comparison to properties in a rural area or a suburb of a city. Also, a property touching tarmac or near an industry, a school, or a major development will definitely be of high value compared to one in an area without developments.

2. TYPE OF THE LAND

The main types of land area are residential, commercial, or agricultural in most cases, commercial land is of high value due to income- generating factor in comparison to agricultural land. Therefore, before conducting a valuation on land it is recommended to classify it.

3. THE SIZE OF THE LAND

Different sizes of land have varying valuations. However, in some cases, an eighth- acre plot will be of higher value than an acre or more depending on the type of land, location and usage. Therefore, do not fall into the temptation of assuming that the valuation of a big chunk of land can be higher than the smaller piece. The value of land highly depends on the land itself and the developments on the land.

4. AMENITIES ON THE LAND

Availability of amenities on the land has the direct impact on the valuation. A developing area with schools, hospitals, markets, water and power supply will have a higher valuation.

5. ACCESSIBILITY

The value of land also depends on its accessibility. if a plot of land is not accessible or if the access road is not wide enough, it will be valued lower as compared to a more accessible one.

6. FLOOR SPACE INDEX (FSI)

This is basically the total floor area of a building that can be built on the land during development. The value of land also depends on FSI or in other words on the total floor area of the building that can be built on the plot.

7. SOIL TYPE

Soil type is another factor during valuation, commonly, it is referred to as soil bearing capacity. This directly affects the cost of building foundation where a good soil does not cost much while poor one requires more resources during development. Therefore, land with good soil bearing capacity will be priced higher.

8. ENVIRONMENTAL FACTORS

Factors such as erosion, flooding, landslide and other adverse environmental factors are put into consideration when calculating the value of the land. A land prone to these factors can be valued at a lower price.

9. SPECIAL ADVANTAGES ON THE LAND

If the land has special advantages because of its location or any other reason, they are also put into consideration during the valuation of the land.