Who orders this
- Buyers and sellers of vacant lots and acreage
- Developers and builders assessing a site
- Lenders financing land purchases or servicing
- Owners, lawyers and accountants needing a value for tax, estate or expropriation matters
What drives the value of land
Land appraisers start with highest and best use: the legally permitted, physically possible and financially feasible use that produces the highest value. A residential lot with municipal water and sewer on a paved road is a very different asset from a raw parcel with no services. The appraiser researches comparable land sales and, for development sites, may consider the potential yield of lots or units.
- Zoning, official plan designation and permitted density
- Servicing: water, sewer, hydro and road access
- Size, shape, frontage and topography
- Environmental features, flood plains and conservation limits
- Approvals already in place, such as a draft plan or severance
Why land is quoted first
No two parcels are alike, and research needs vary widely. A serviced building lot in a subdivision is straightforward; a large tract with development potential may need planning research and more extensive analysis. Quoting each property lets the appraiser set a realistic fee and timeline. Share surveys, zoning information, any planning approvals and the purpose of the report when you request a quote.
Frequently asked questions
How much does a land appraisal cost across Canada?
It depends on the size and type of land, its development potential, the research involved and the purpose of the report. A serviced lot costs less than a large tract with development potential. AppraisalDesk quotes each parcel before any work begins.
How is vacant land appraised?
Most land is valued by comparing it with sales of similar land, adjusted for location, size, zoning, servicing and access. For development land, appraisers may also analyze what the site could yield once approved. The report explains the highest and best use behind the value.
Can a bank finance vacant land?
Some lenders do, usually with larger down payments and stricter terms than for a home. They almost always need an appraisal addressed to them. Ask your lender about its land policy and any designation it requires, such as an AACI.
Who is qualified to appraise land?
Land appraisal generally calls for an AACI, P.App from the Appraisal Institute of Canada or, in Quebec, an évaluateur agréé. A residential CRA, P.App can usually appraise individual residential building lots. Lender requirements may be stricter.