When it comes to land values in 2020, they tend to fall all over the spectrum. Given the current health pandemic we are facing, it’s easy to see why the value of some properties has fluctuated so greatly recently.
Numerous factors have helped to foster an unclear market for land values including an economy that is stuck in limbo and a stock market following suit, new land and trade laws, as well as an uncertain fall 2020. Still, it’s important to understand the concept of land values, especially if you’re considering purchasing property.
Let the good folks at Santa Cruz Properties clarify some of the more common misconceptions regarding the value of lots for sale in East Texas, so that you can have a better grasp of what they should be worth.
Clarifying the Misconceptions of Land Value
Many prospective landowners tend to believe that there is no way to predict whether land values will go up or down. This is true to an extent, but there is one solid variable that can increase the value of a property, and that is whether people move into the specific area around the land.
As population increases in a given area, the demand for land will also generally increase. This ultimately helps the valuation and price of a given property.
Another mistaken belief is that land values reflect the stock market. Over the years, this has not been the case. Many factors can impact the value of lots for sale in East Texas. Among these variables are whether your land is susceptible to natural disasters, laws at the local and national level, rate of return, commodity prices, and other economic dealings.
While the stock market can be a powerful indicator of where the economy is headed, it is not the sole factor in determining land values.
Landowners also believe that if there is a high demand for a certain type of land (i.e. farming or wooded), the value of the land will be automatically be high. This isn’t always the case.
Separate factors can derail the value of the land from going up. For example, if the forest area of East Texas suffers a drought, this could damage the land value, even when the demand for forest productivity is high.
Another factor to consider when looking at lots for sale in East Texas is the amount of hunting that is done in the area. A decline in hunting can mean lower recreational land values. While recreational land remains among some of the most popular land sold on the market, it is important to take hunting into account when valuing the land.
Let Santa Cruz Properties Help You Find the Perfect Piece of Land
Land values can be complicated without the guidance and support of a property expert. In order to properly assess the value of the property, it would be wise to hire a land consultant that is experienced about the local market and who can take into account dozens of different factors to give you a better understanding of your land value.
The experts at Santa Cruz Properties are here to make sure that you’re getting your money’s worth. Don’t overpay for your future lot!