Property Valuers : How To Evaluate A Building Plot?

With Help of Property Valuers you can better understand my profession as an expert in real estate appraisals, I offer you an example of an estimate of a building plot, of course each file being unique, this example may not be applicable to your plot.

The value of a building plot is proportional to its constructability as well as to its location, its environment, its area which wants to condition its belonging to a given real estate market. Schematically, a piece of land capable of accommodating three individual houses will be worth three times that of a piece of land allowing the construction of only one house. It is therefore essential to know the factors of constructability. The main legal factors relating to town planning law, the mission of which is to regulate the right to build. It is necessary to determine with precision the town planning rules applicable to the land.

Urban planning rules define the constructability of land according to the following principles:

– the nature of the authorized constructions: In our hypothesis, these will be constructions for residential use: thus, if the land can only receive constructions for industrial use, there is no need to go further .

– access: An access of minimum width is generally provided for by town planning regulations. Insufficient access can therefore make land unbuildable, unless access is negotiated with a neighbour. It will then be necessary to reduce the land by the price to be paid to obtain compliant access,

– infrastructure: The town planning regulations require that the land be served by drinking water, electricity and sewage networks if they exist.

Consequently, the expert must ensure that the land is located near the networks. It is important to know the location of the networks and their characteristics (diameter, depth, power, etc.). If it is far from them, the cost must not be prohibitive in relation to the value of the land since this must be imputed on said value.

– size of the land: the regulations sometimes impose a minimum size for building, especially if the land is not connectable to the public sewage network.

– Siting of buildings in relation to public and private roads: This is generally regulated and a certain distance from the roads is imposed. Thus, it can be imposed to build in alignment or behind them. Thus, land affected by alignment at a significant depth may lose part of its value, directly depending on its loss of constructability.

– location of constructions in relation to the dividing boundaries: In the same way, minimum distances are often imposed in relation to the boundaries of the land or it is imposed to build on the boundaries.

– implantation of constructions to each other on the same land: There may be rules for the implantation of non-contiguous constructions. They are important in the event of building a separate outbuilding or a group of houses on the same property.

– maximum height of constructions: It determines the maximum size of the constructions in height. This can be measured in meters or in levels. As an indication, there are 2.70 to 3 m per level.

– parking: A certain number of parking spaces is sometimes imposed per dwelling. The land must therefore be able to accommodate both the dwelling and the garage. Otherwise, the value of the land must be reduced by the amount of the participation which is generally imposed if it is not possible to build a garage.

– density: This is the ratio between the surface of the land and the building surface of it. In practice, this density is given by the application of all the preceding rules.

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