When buying or building a home, the land itself is a major component of the property’s overall value. The desirability, usage potential and key attributes of the lot on which a house sits can significantly influence its total worth in the real estate market. Here’s how your land adds significant value to a home.
In real estate, location is everything. Land in an ideal, sought-after neighborhood naturally commands top dollar. Convenient proximity to amenities like top schools, parks, shopping and dining makes land more valuable. Lots near major employment hubs or with easy transit access allow for a shorter commute. Scenic rural properties can also be premium.
Curb Appeal Potential
Land with good visibility and vantage for aesthetics helps boost a home’s curb appeal. Corner lots, parcels fronting two streets, properties with long driveways or minimal trees have greater potential for beautiful landscaping and architectural focal points that catch the eye. This added visual allure can increase perceived value.
Room for Additions
A home with ample usable yard space allows for future additions like swimming pools, mother-in-law units, large garages or accessory dwelling units (ADUs). This flexibility and room to grow makes the land more desirable. Larger lots also accommodate expansive gardens, play areas and outbuildings.
Space and Privacy
Extra breathing room is a luxury. Land affording more privacy between neighbors and distance from the street offers peaceful tranquility. Parcels backing up to greenbelts, trails or protected parks provide beautiful views without overlooking other homes. Such natural backdrops are premium.
Outdoor Living Potential
Quality land allows you to better enjoy the outdoors on your property. Flat yards make landscaping and hardscaping easier for patios, fire pits and kitchens ideal for entertaining. Gradual topography facilitates pools, sports courts or play areas. More usable yard space boosts livability.
Home Orientation Options
A larger land parcel provides flexibility in designing and orienting your floorplan for functionality. Consider the best placement to complement natural light, views, noise buffers, drainage, prevailing winds and energy efficiency based on the shape and features of your lot.
Zoning and Land Use
The zoning designation, allowed density and permitted uses for a property determine what can be built and developed. Land zoned for higher density or more flexible mixed use will likely be more valuable. Parcels already zoned for commercial applications also appraise higher.
Raw vacant land with the potential for a major housing development, commercial retail complex or industrial use has increased inherent value due to its future income generating potential at full build-out. Undeveloped land is essentially a blank slate for possibilities.
Land value increases if natural resources are present, like mineral deposits, water features, timber, soils for farming or ranching, etc. The raw materials available can be harvested, sold or utilized to produce income, boosting overall property appeal.
Some land is grandfathered in under older zoning rules or ordinances that are no longer applicable. This allows certain uses or exemption from limitations placed on neighboring parcels. These grandfathered rights enhance differentiated value.
Easements and Access
Existing easements for access, utilities, water, drainage, conservation or other usage rights across a property can add or detract from land value depending on the specific easements granted. Guaranteed legal access is especially important.
If the land is part of a larger development or community association, value is added via shared amenities like pools, clubhouses, golf courses, marinas, trails, recreational facilities and grounds maintenance covered under HOA fees.
In summary, your land itself lends significant underlying value to any home. Assessing all of its capabilities, features, flexibility, rights and potential will further maximize your property’s worth in the real estate market. Your home is only as valuable as the land on which it stands.