Determined by Market Comparables and Land Characteristics
The appraisal value of land is primarily based on the sales comparison approach, which analyzes recent transactions of similar properties in the area. Appraisers adjust values based on lot size, zoning, location, access, and infrastructure.

• Comparable land sales are matched by acreage, use type, and market conditions
  
• Adjustments are made for improvements, entitlements, or site readiness
  
• Proximity to roads, utilities, and demand drivers increases valuation
  

Influenced by Zoning, Entitlements, and Development Potential
Land that is zoned for industrial, commercial, or high-density development typically commands a higher value than unentitled or agriculturally zoned land. Appraisal also considers future land use designations and build-out potential.

• Higher density or flexible zoning increases the site’s income potential
  
• Entitled land (permitted or pre-approved for development) receives premium value
  
• Environmental or easement restrictions may reduce appraised value
  

Validated Through Professional Appraisal and Valuation Reports
To establish a defensible value, certified appraisers conduct site inspections, review zoning documents, and issue a detailed appraisal report. This is required for financing, investment decisions, or tax appeals.

• Formal appraisals use market, income, and cost approaches when applicable
  
• Reports are conducted by MAI-certified or state-licensed appraisers
  
• Bank lenders, investors, and government agencies require validated appraisals