Ground estimate: everything you need to know about estimating a land

In contrast to built real estate, land is an unbuilt property that therefore has a different real estate estimate.

Its estimated sale value will not depend on the same criteria as for a house or apartment since it will be determined according to its location and its use. This seems to be a simple operation, but we must pay attention to a large number of elements to qualify this land in more detail and above all to determine its classification, namely whether the land is constructable, non-constructible or even agricultural, which will make all the difference.
What are the rules to follow before estimating a land

The very first thing to do before going headlong into estimating a land is to inquire at the town hall with the land registry. The latter is a document that brings together the plans of each municipality on territory by including the plots and built buildings.The land registry can be of major help, it is an asset to which any seller or buyer must refer because it details each element of property, its tax assessment used for the calculation of taxes, the address of the owner as well as the parcels and much more information needed to begin an estimate.

Anyone can visit the government website to learn about these land plans as well as the Local Land Use Plan."

The interest of referring to it is above all to be able to be informed about the limits of the land, the presence of constructions on the latter and on its environment. Indeed, the surface area of a property, the presence or not of buildings and the surrounding elements such as lakes, forests, shops, leisure infrastructure or roads are crucial information for estimating the price of a land and related costs.

Nevertheless, this information must be supplemented by consultation with the town hall's planning rules. This is important in order to know if the land will be buildable.
The PLU - local town planning plan

The first reference to be covered is the PLU - local urban planning plan - regulatory document but also strategic as it tries to plan the fluctuation of urban planning for the next few years and indicates the evolution of the different areas with their planned future constructions and assignments.

It is important to be aware of these areas as they will determine whether the land is buildable or not within them. Indeed, there are urban areas, those to be urbanized in which the land is obviously buildable, agricultural or spreading areas or state forest that are often preserved and natural areas with great potential but very Regulated.

Successfully locating the targeted land in one of these areas will therefore further refine its real estate estimate.
The planning certificate

The second reference is the planning certificate. There are two kinds of them.

The information planning certificate will allow to know what right of planning is applicable for the land concerned. The law is understood in this case as planning taxes, property rights and planning plan rules. This data is extremely important as the price will vary depending on the rules that will be applied. Then, the operational planning certificate will simply indicate whether the nascent construction project is possible. Everyone should review their planning documents.

As you may have noticed, there are two main types of terrain that need to be distinguished because the estimates will be completely different from one to the other. Indeed, a buildable land will have a much higher price than a non-buildable land. When considering starting an estimate, consider considering the nature of the land.

Estimating buildable and non-buildable land

The estimate differs firstly because a buildable land is by definition intended to receive a construction, which makes it coveted and rare in urban areas. Its price will therefore be higher. However, in urban areas not everything is homogeneous and there are large disparities between cities.

In order to determine a fair price, several data must be taken into account. It is necessary to determine whether the land is in subdivision, and therefore often already equipped, or whether it is on the contrary isolated which will induce more steps to be taken by the future purchaser. The price will not be the same at this stage. In addition, its ability to build is also essential. Naturally, a sloped or poorly configured terrain will result in a greater cost than a level land.

To estimate non-buildable land, one must be aware that there is greater heterogeneity within the areas where they are located. These areas are mainly areas to be urbanized and agricultural or natural areas. The evaluation will be more complicated, which is why real estate experts are in great demand for such estimates. You have to ask yourself why it is necessarily more complicated to establish.

This is due to the complexity of the data to be taken into account when determining the market value of non-buildable land. These can be categorized into three categories, which are physical, legal and economic factors. Physical factors include, for example, climate, land quality, irrigation system or terrain, which is difficult to estimate.
The legal factors are even more technical since it is necessary to evaluate easements of passage, the possibility of dividing the land, the applicable planning rules etc. Finally, economic factors may be the location of the land and/or its environment.

In order to estimate a land, it is therefore necessary first to investigate whether the land is constructable or not and only after analysing all the physical, legal and economic factors of the land. To estimate a non-buildable land, a slightly more delicate operation, it may be clever to enlist the advice of a real estate professional.

Perhaps it is useful to focus on a particular case, namely farmland. To estimate their values it is ingenious to rely on comparable operating prices and then find the average price per hectare, the agricultural land is generally huge. Farmland is the subject of a separate case because the elements that will weigh in the balance when estimating will be different. In this estimate, it is mainly the quality of the land and possible plantations that will import.