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Factors affecting rural land value

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https://ir.library.oregonstate.edu/concern/graduate_projects/k930bx75w

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  • The value per-acre and annual amortization of rural land varies dynamically by parcel size. There are several adjustment factors or independent variables spatial, productive and development potential which affect the market value of all rural land. The evaluation of these must be accomplished by parcel size to be realistically equated. All variables or adjustment factors interact to comprise market value per-acre. It is important to have a clear understanding of the extent variables interact to know the actual value attributed to each. With this knowledge the adjustment factor to stress for a particular size property becomes obvious. Between property size categories trends established by important variables further understanding. The increase of a single acre on a small rural homesite makes a large difference In the total per-acre value. A parcel's location in respect to communities and population density are important value factors. This is true for any size property, particularly the rural residence. Soil productivity potential becomes important on parcels 11 to 20 acres in size. Soil is of prime consideration in evaluation properties of 61 acres and larger. The date of sale, reflecting amortization, Is a major factor when evaluating rural land. Large equitable farms are an exception where amortization plays a lessor [role] in evaluation with soil and location the key factors. The rural land market establishes the importance of each variable associated with per-acre value for all size property. Given the value and relationship of important adjustment factors, an intelligent appraisal of market value can be made on any size parcel.
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